Rangappa Krishnappa vs. Office Of The Commissioner - Karnataka High Court, 31 March 2023

Cause title — parties, addresses and appearances

- 1 - WP No. 6637 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 31ST DAY OF MARCH, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 6637 OF 2023 (T-RES) BETWEEN: RANGAPPA KRISHNAPPA S/O RANGAPPA AGED ABOUT 41 YEARS, R/AT NO. 14, 1ST FLOOR, RAMPURA MAIN ROAD, HIRANDAHALLI BENGALURU RURAL - 560 049. GSTIN /UIN: 29CIGPK2078A3ZC …PETITIONER (BY SRI. NATARAJ G., ADVOCATE) AND: 1. OFFICE OF THE COMMISSIONER OF CENTRAL TAX (APPEALS - 1) DR. B.R. AMBEDKAR SARIGE SANKERNA BUILDING 4TH FLOOR, HAL AIRPORT ROAD, DOMMALURU, BENGALURU -560 071. 2. THE ADDITIONAL COMMISSIONER GST (APPEALS-1), DR. B.R. AMBEDKAR SARIGE Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - WP No. 6637 of 2023 SANKERNA BUILDING 4TH FLOOR, HAL AIRPORT ROAD, DOMMALURU, BENGALURU -560 071. 3. THE SUPERINTENDENT OF CENTRAL TAX RANGE DED-6, ED-6 EAST COMMISSIONER BENGALURU - 560 071. 4. THE ASSISTANT COMMISSIONER OF CENTRAL TAX DED - 6, EAST DVN - 6, GST EAST COMMISSIONERATE, BENGALURU -560 071. …RESPONDENTS (BY SRI. JEEVAN J. NERALAGI, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 03/01/2023 PASSED BY THE RESPONDENT NO. 1 IN APPEAL NO. 07/ADC-AI/GST/2023 VIDE ANNEXURE-C; TO QUASH THE ORDER DATED 19/04/2022 BEING PASSED BY THE RESPONDENT NO.3 IN REFERENCE NO. ZA2904220568277 VIDE ANNEXURE-B. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN "B" GROUP, THIS DAY, THE COURT MADE THE FOLLOWING: - 3 - WP No. 6637 of 2023

ORDER

The petitioner's registration is cancelled by the impugned order dated 19.04.2022 [Annexure-B] under Section 29[3] of the Central Goods and Services Tax Act, 2017. The petitioner's primary grievance both before this Court and the first appellate Authority is inability to avail the opportunity of hearing extended for bonafide reasons. The petitioner asserts that the impugned order is in violation of the principles of natural justice. Sri. G Nataraj, the learned counsel for the petitioner, and Sri. Jeevan J Neeralgi, the learned counsel for the respondents, are heard for final disposal in the light of this grievance.

The petitioner is indeed served with the Show Cause Notice dated 05.04.2022 but has not responded to this Notice. The third respondent has cancelled the registration by the impugned order on 19.04.2022 recording that the petitioner has filed response on 17.04.2022 and upon consideration of - 4 - the reply and the submissions made at the time of personal hearing, is of the opinion that the registration must be cancelled. Thus, reason for cancellation of registration is the failure to file returns.

The petitioner has preferred first appeal contending that the petitioner has filed response but could not appear for personal hearing because he was suffering from lungs disease and was advised bed rest which had a cascading effect on his business including the failure to file monthly returns. The petitioner's appeal is rejected on the ground of limitation.

If the petitioner can demonstrate bonafides, there would be no need to take a pedantic approach. The reasons assigned by the petitioner could be bonafide and the petitioner must have another opportunity of hearing to establish the same.

- 5 - The third respondent will

therefore have to necessarily extend an opportunity and consider the circumstances that are relied upon by the petitioner. For the aforesaid reasons, the following:

ORDER

The petition is allowed in part, setting aside the cancellation order dated 19.04.2022 [Annexure-B] restoring the proceedings to the third respondent for reconsideration in the light of this Court's observation.

The petitioner without further notice shall appear before the third respondent on 19.04.2023. JUDGE

AN/-