M/S Kayo Enterprises Private Limited vs. Commissioner Of CGST Delhi & Ors.
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The petitioner, M/s Kayo Enterprises Private Limited, filed a writ petition challenging an order dated 05.12.2024, a Show Cause Notice (SCN) dated 13.01.2023, and an order dated 11.10.2023. The petitioner sought quashing of these orders, restoration of its GST registration, and waiver of penalties for late filing of returns after registration cancellation. The GST registration was cancelled on 11.10.2023, primarily for failing to furnish returns for a continuous period of six months. The petitioner did not dispute this ground for cancellation. The appeal was dismissed as being filed beyond the statutory period.
Held
The Court held that the dismissal of the appeal on the ground of being filed beyond the statutory period was justified, referencing its own judgment in M/s Addichem Speciality LLP vs. Special Commissioner, Department of Trade and Taxes [2025 SCC OnLine Del 646]. The Court found no merit in the challenge to the cancellation of the GST registration, as the petitioner did not dispute the primary ground for cancellation: failure to furnish returns for a continuous period of six months. Consequently, the writ petition was dismissed. However, the Court granted the petitioner the liberty to apply for fresh registration, taking into consideration the provisions of the Circular dated 28 March 2019 issued by the Central Board of Indirect Taxes and Customs.
Key Issues
1. Whether the order dated 05.12.2024, the SCN dated 13.01.2023, and the order dated 11.10.2023 are liable to be quashed and set aside? (Question of law/mixed fact and law). 2. Whether the petitioner is entitled to the restoration of its GST registration certificate? (Question of law/mixed fact and law). 3. Whether the petitioner is entitled to a waiver of penalties for late filing of returns after the cancellation of registration? (Question of law/mixed fact and law). Petitioner's arguments: The petitioner sought quashing of the impugned orders, restoration of registration, and waiver of penalties, arguing inability to file returns due to registration cancellation. Respondents' arguments: The respondents did not dispute the ground for cancellation of registration, which was failure to furnish returns for six continuous months. The appeal was dismissed for being filed beyond the statutory period.
Sections Cited
Section 73 (implied by penalty discussion), Section 129 (implied by penalty discussion)
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R %
2025
The present writ petition has been preferred seeking the following reliefs: “i) This Hon‟ble Court may pleased to issue a Writ of certiorari or Writ in the nature of certiorari or any other appropriate Writ or order quashing and setting aside the impugned order dated 05.12.2024 (Annexure P-1) as well as SCN Dated 13.01.2023 (Annexure P-2) as well as order dated 11.10.2023 (Annexure P-3)
ii) This Hon‟ble Court may pleased to issue a Writ of Mandamus or Writ in the nature of mandamus any other appropriate Writ or order directing the Respondent to forth with restore the Registration Certificate of the Petitioner under CGST Act/DGST Act; or iii) This Hon‟ble Court may pleased to issue direction for waiver of the penalty imposed for late filing of the returns after cancellation of registration as the petitioner is unable to file the GST returns on account of cancellation of its registration.
iv) Such further relief as deemed fit in the facts and circumstances of the case may kindly be granted in the interest of justice for which act This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 21:41:08
of kindness as petitioner shall ever pray.”
We find that insofar as the dismissal of the appeal on the ground of it having been preferred after the maximum period as statutorily prescribed, the order would clearly merit no interference bearing in mind the judgment rendered by us in M/s Addichem Speciality LLP vs. Special Commissioner, Department of Trade and Taxes [2025 SCC OnLine Del 646].
The Goods and Services Tax [„GST‟] registration which was held by the writ petitioner came to be cancelled on 11 October 2023 primarily on the ground that the petitioner had failed to furnish returns for a continuous period of six months. This allegation is not disputed by learned counsel for the writ petitioner. In view of the aforesaid, we find no merit in the challenge which stands raised.
Consequently, while we dismiss the writ petition, we leave it open to the writ petitioner to apply for registration afresh and bearing in mind the provisions made in Circular dated 28 March 2019 issued by the Central Board of Indirect Taxes and Customs.
YASHWANT VARMA, J.
HARISH VAIDYANATHAN SHANKAR, J. MARCH 06, 2025/RW This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 21:41:08
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.