Balatripurasundari Anjali Saride vs. Additional Commissioner (Appeals -I) -Central Tax And 5 Others - Telangana High Court, 09 March 2023

Cause title — parties, addresses and appearances

[ 3311 I I{IGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY ,THE NINTH DAY OF MARCH TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 6331 OF 2023 Between: Balatripurasundari Anjali Saride, No 8-2-393181404, Mount Meru Apts, Road No 5, Banjara Hills, Hyderabad, Telangana, 500034. ...'ET,T.ONER AND 1. Additional Commissioner (Appeals -l) -Central Tax, Hyderabad Commissionerate, GST Bhavan, Basheer Bagh, Hyderabad - 500 004. The Superintendent - Central Tax, Jubilee Hills, Hyderabad. The Superintendent - Central Tax, Panjagufta Range, Ameerpet Division, Hyderabad GST Commissionerate, Hyderabad -500 073. The Assistant Commissioner -State Tax, Jubilee Hills Circle, Punjagutta Division, Hyderabad -500 001 The Union of lndia, Through the Secretary, Ministry of Finance, Norlh Block, New Delhi -1 10001. The State of Telangana, Represented by its Principal Secretary, (Revenue CT-ll), Secretariat, Hyderabad. ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of mandamus or any other appropriate writ or Order or Direction declaring. (a) The action of the Respondnet-2 in confirming the Order of the Cancellation of Registration of the petitioner GSTN lD 36BLMPS3636N2ZA by Suo-moto without signature, without proper Form and without providing an opportunity of personal hearing is not only arbitrary and illegal but also contrary to provisions of the CGST Act read with Rule 22 (3) and Rule 26 (3) of the CGST Rules 2017. (b) The action of the Respondent -2 in passing the Order of the Cancellation of Registration vide Reference No 2A36092OO12952N dated Oglogl2020 is without jurisdiction, ex-facie barred by limitation, without authority of law. as it is not only contrary to the provisions of the Act but also artritrary and in violation of Principles of Natural Justice read with Article 19(1)(g) and Article 21 of the Constitution of lndia. (c) To call for the records on the file of the 1st Respondnet-1 with regard to the lmpugned Order in Order-in-Appeal No. HYD-GST-HYC- APP1-085- 22-23-GST dated 31.03.2023 and to quash the same as it is passed contrary to the Act in a manual mode; and also prayed the Honourable Court to direct the Respondent or Respondents to 2 3 4 5 6 / 2 1 c l restore the GSTNID 3(iB Lt\4PS3636N2ZA and allow the Pe.itroner to file such returns for the balan,:: reriod- lA NO: 't OF 2023 Petition under Section 151 CPC praying that in the ci oumstances stated in the affidavit filed ir s,upport of the petition, the High Court r,ay be pleased to Suspend the Orders for the Cancellation Registration of the :lesprondent-1 and Respondnet-2 and rl rect the Respondent or Respondents o Revive the GST Registration of the lelitioner vide GST lD 36BLMPS3636N rl;aA with the GST common Portal, perr ling disposal of the above Writ Petitior as otherwise the Petitioner will be put o severe loss and hardship Counsel for the Counsel for the Counsel for the Counsel for the Petil oner: SRl. NARENDRA KUMAR T Res; ondent No.1to3: M/s. BOKARO SAPNA REDDY Resl ondents No.4&6: SRl. V. RAJESHWAR R,AO Res; ondents No.5: SRl. B. MUKHERJEE REF' SRl. GADI - F'IAVEEN KUMAR (Dy. SOLICITOR GEN[:FIAL OF INDIA)

The Court made the ollowing: ORDER

t t I i TTIE HON'BLE THE CHIEF J(,STICE UJJAL BIfl'YAN AND THE HON'BLE SRI WSTICE N. TI'XARA}IJI WRIT PETITTON No. 6331 of 2023 ORDER: (Per tte I lon'ble the (-htl Justrce Llial Bhuuon) Heard Mr. Narendra Kumar.T, learned counsel for the petitioner and Ms. B.Sapna Reddy, learned counsel for respondents No.1 to 3. Also heard Mr' V'Rajeshwar Rao, learned counsel for respondents No'4 and 6; and Mr. B.Mukherjee, learned counsel representing Mr' Gadi Praveen Kumar, learned Deputy Solicitor General of India representing resPondent No. 5. 2. By filing this petition under Article 226 of the Constitution ol tndia, petitioner seeks quashing of order dated 09.09.2020 passed by respondent No'2 as well as the order-in-appeal dated 3l'Ol 2023 passed by respondent No.1. 3. By the order dated Og'Og'2O2O, the goods and SETVlCES ta-x (GST) registration ol the petitioner has been /

2 cancelled on he ground that petitioner had not f lec. GST returns for rt ore than six months. Appeal file ,.[ bv the petitioner beli rr: respondent No.1 against such r:i:.ncellation order has t,:en rejected by the order-in-ap;,t:rrl dated 3t.o1.2023. 4 . Petitior. :r before us is a proprietarl' concet tl en gaged in the businr ss of providing professional actre;s, s€rvlces and is regist ered under the GST lan's having (f S'll{ ID 36BLMP536l: 6li2ZA

Respor lent No.2 issued show cause n('1. ce dated i5.04.2019 . r the petitioner to shon, CaLtSr- iLS t:, ra'l-rv her GST registrcr ion should not be cancellcd or) LIt 3 E;round that petitionr r had not filed GST returns for a :< ntinuous period of six alonths. Interestingly, petitiorrer ir er; d.rected to appear t :fore respondent No.2 on 27.1 1.20 t8 ivhich date had lor I ,-'xpil much bcfore issuan< e rr[ ;hos cause notice on l5 l.l'.2019 \

It appr ars that petitroner had submrttecl rcpty on 25.O4.2O19 vl-rich u'as not accepted b-r' r'esporL:lert No.2

--77 J r whereafter impugned order dated 09 'O9 '2O2O was passed cancelling the GST registration of the petitioner'

Appeal hled by the petitioner before respondent No'1 was unsuccessfut. By the order-in-appeal dated 3l .O1.2023, the appeal was rejected on the ground that the date for filing application for revocation of cancellation of GST registration had already expired'

Issue raised in this writ petition ls no more res integra.

This Court in Nithya Constructions v. Union of Indiar held as follou's

We find that tssue raised in this writ petitron rs covered by a decision of thrs Court dated 27 06 '2022 in W.P.No.2707l ot 2022 Charyulu KaramPudi v lAppeals-Il), (M/s. chenra KtishDarma Additional Commisslouer 4- Relevant portion of the aforesaid order dated 27 .06.2022 is extracted hereunder:- "

Petrtroner s a proprit:IorsLnp Jirm engaged in tlre Dusttress ul tunyug out tuotks conlract seruices' I I ' zozz 1z1TMl i86 I I

:l ;t t. rplistered uttll tlrc Goods and Seruces Ta-t IGST) ttu: otities in tlle Slale of '|'elangana. By the order ,1.at d 22.01.2019, respondetlt No.2 canceLlt?d rc!, ;tr1ti)n of the pelitioner under GST. Again:;t tl is ord r of cancelldtiotT, petitioner prefered oppcal be_t re re:spondent No.l o.ssa ing the legalitlt and uat liltj ol the order dated 22.01.2019. BA tlle orde.r dot,d 19.04.2022, respondent No 1 as tlle appelk)te 1ut totitg has held thal the oppeal uas Jiled be-uo,w tfu p'rtod of extended limLtation. Accorditeltl, ttrc .1pt 20l uas drsmissed. 4 .5. lrc Tr: C-t ,C" pet lxr ]Ience, the wit petiLon. On a q1ery ba the Cauft as to tthg pet,ttot,(,] I oL dpprodcled LlLe (;oods and .Ser-lr(.€s 7r]r u '.al (GST Tibunal) under Secton 1 I 2 cf t he tni <)ood.s anrl Sennces Tax Act, 2O17 (lfie1ly S'l Act' h.ereinafret), leanaed caunsel i)r the tianer submits that ttll ddte no GST Tribunal t(l:: a ronstituted- 6. lr'e haue peruscd tle order da:r',l 19 )4 2022. Ihrb rs an order passe.d by ll:e ltrst at'. el ate authoitA under Section 107(l) of tlt. C:(,5." ,,1,' .ls per subsectton (1) of kction lO7 of th( C(,s' At: l)mitation for rthng appeal B three, n\o'tllt; f, )tlt lht (1dte of communication of the order altyra'er{ alt itlst. Uflder subsectloa (4) of Sectnn 107 ol h,, C' S'1 Act, the appellate authoitA malJ ollc tu ,te al) e(i to be presented uithrn a further penod of o^,. m:lll, prouided sulfi:ient cause is shoL,n ,y r,fr,. al) )eltdnt. 7 I ltoLtglt llte louer appellot(: autl@atl| t t1ll !). rit tl in holdulg that while I mag alloto liluto of otr ai )eti begon-d the limitation of three motutt. [o, 1 fi fu,r peiod of one month, lherefore, blt erto s@n . f Ii,t italiotl begond the ertetded periad of o e nlottttt

5 delog begon-d the ertended penod of one month cannot be @nlorcd, we are of the uiew that such a stc.nd taken bV respondent No.l maA aduerselV alect the petitione(. This is more so because respondenl No.2 had suo motu cancelled the GS7' regtstratrcn of the petitionet on tlle groutul of non Jiling of retunls and. as GST Tribunal has not been (nnstth)ted u\der kction 109 of the COST Act, petitioner unuLd be lefi withaut dny rem.ed-A.

We Iwth.er lnd thot tlle issue pertai$ to can@lld'tion of GST registratioa of the pettttoter. Irt the facts and ctrcumstances of tlrc case, Lt would- be just and proryr if the enttre matler is remattled back ta respond.ent No.2 to reconsider llp case of lhe petitianet and. lhereafrer to poss appropriote order in q.wrdonce with lqw. 9. ln the light of Lhe oboue end uttltout expressing anA opnion on ment, ue remaid the matter back to the Jile of respo\dent No 2 to consider the grieuance expressed bA tlv l)eutorer agantst cancellation of GST reqisuatrcn uLd tlLereQfler pass qn opptoPiate ord.er tl accordatt<(' tutllL low- Needless lo sag, when tlle respottd?ttt l-o ) lrcars the matler on remand, peLitioner slLoLL subtt L all lhe redlrns a.s per the statule."

Accordingly and in the light of the above, we set aside tlre order dated 22.07.2019 as lvell as the order dated 25.02.2022 and remand the matter back to respondent No.3 to consider the grievarnce expressed by the petitioner against cancellation of GST registration and thereafter pass an appropriate order in accordance with law. Needless to say, when respondent No.3 hears tlle matter on remand, petitioner shalt submit all the returns as per the statute. I I

lau. \er:c e:;s to say, petitioner shall be 5tiven due

10.

Accord rllll- and in the light of the above impugned orders dater. O9.09.2020 ana 31.01.2023 are ):ereby set aside. Mattr r is remalded back to respondent ."1o. 3 (norr having jurls: iction) to consider the grievance e>q:,ressed bv the petitionr: - against cancellation of GST registr ation ar-rd thereafter pi ss an appropriate order in accorcl,rnce u,ith To, opportu r-rity :1 hearing and sha1l be pern-rittec ,o submrr the relevant 'eturns as per the statute 1 1 . This di ;F oses of the writ petition. Miscel xreous applications pending, il' an_r' shall stand close<l However, there shall be no order ts, to costs. . N. CHAI.IT)RA SEKHAR RAO ASS] S.TAI.I.T REG ISTRAR ///I ( u ::iECT]TN OFFICER 1 . The Addition;r C;ommissioner (Appeals -l) -Central Tax , F yderabad Commissionc ale, GST Bhavan, Basheer Bagh, Hyderarrad - 100 004. 2. The Superint( n(lent - Central Tax, Jubilee Hills, Hyderat,ad.

The Superinlr n(lent - Central Tax, Panjagutta Range, Atrrr,:erpet Divrsion, Hvderabad C, il Commissionerate, Hyderabad -500 07:.

The Assrstarl Commissioner -State Tax, Jubilee Hills Ci'r:le, F'unJagutta Division, Hyc :r:rbad -500 00 1

The Unron ol nrjia, Through the Secretary, Ministry of F rtanct:, North Block, New Delhi -1 0()0'l .

The Principal S()cretary, (Revenue CT-ll), Secretariat,T.S Hlderabad.

One CC to Ii 11. NARENDRA KUMAR T, Advocate [OP-lr:)] 8. one cc to lrl s BoKARO SAPNA REDDY, Advocate [C)l:UC'

One CC to {l ll.V RAJESHWAR RAO, Advocate [OPLI(]l 10.One CC to l: ?l.B MUKHERJEE , Advocate [OPUCI 1'1 . One CC to I ,Rl.GADl PRAVEEN KUMAR, Dy. SOLICI IOR (]ENRAL OF rNDrA[OPU(] '

12.

Two CD copi :s ,J */ BtV GJP ; t I

HIGH COURT DATED:09103,2023 ORDER WP.No.6331 r:f 2023 DISPOSING C F THE WRIT PETITION WITHOUT C( STS v /tT\oH ,1: ti, (", )1 1\t\ r.'.ij\ \..