M/S The Association Of Otolaryngologists Of Bihar vs. The Principal Commissioner, CGST And Cx

CWJC/9265/2024HC PatnaGSTCNR BRHC01049558202415 July 2024Bench: MR. JUSTICE PARTHA SARTHY,THE CHIEF JUSTICE-3 pages

AI SummaryDismissed

Facts

The petitioner, M/s The Association of Otolaryngologists of Bihar, is challenging the cancellation of its GST registration dated 18.10.2022, passed by the Superintendent, CGST and CX, Patna. The petitioner claims it did not receive the notice dated 18.10.2022 (Annexure-P/2) leading to the cancellation. The petitioner did not avail the statutory appeal remedy against the cancellation order. Furthermore, the petitioner also failed to utilize the Amnesty Scheme introduced by Circular No. 3 of 2023, which allowed restoration of cancelled registrations upon payment of dues between 31.03.2023 and 31.08.2023. The petitioner's contention for not furnishing returns was that it had no taxable income during a six-month period.

Held

The Court held that the petitioner has no valid cause to invoke the extraordinary remedy under Article 226 of the Constitution of India. The reasoning was based on the petitioner's failure to avail the statutory remedy of appeal against the cancellation of registration and its failure to utilize the Amnesty Scheme offered by Circular No. 3 of 2023. The Court noted that the petitioner's assertion of having no taxable income for a six-month period did not absolve it of the responsibility to file a nil return if it was a registered dealer. The ratio decidendi is that extraordinary writ jurisdiction is not a substitute for statutory remedies, and parties must diligently pursue available legal avenues. The Court dismissed the writ petition, declining to exercise its discretion.

Key Issues

1. Whether the petitioner has a valid cause to invoke the extraordinary remedy under Article 226 of the Constitution of India, given the availability of statutory remedies and the Amnesty Scheme? (Question of law). The petitioner contended that it did not receive the notice for cancellation and therefore, the cancellation was erroneous. The petitioner also argued that it had no taxable income for a six-month period, leading to the failure to furnish returns. The respondents argued that the petitioner failed to avail the statutory appeal remedy and the Amnesty Scheme, and that even if there was no business, a nil return should have been filed. The respondents relied on the principle that the law favors the diligent and not the indolent.

Sections Cited

Article 226

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.9265 of 2024 ====================================================== M/S The Association of Otolaryngologists of Bihar having its principal place of business at 3rd floor, building no.- V493, Janaki Ent Hospital and Maternity Centre, P.O.- Lohiyanagar, P.S.- Patrakar Nagar, Kankarbagh, Patna, Bihar, through its treasurer Mr. Sanjeev Kumar aged about 52 years, male Son of Surendra Kumar, Resident of House No. V-493, Sachivalaya Colony, South of Kenderiya Vidyalaya Kankarbagh, Patna, Bihar- 800020. ... ... Petitioner/s Versus 1. The Principal Commissioner, CGST and CX having its Office at Central Revenue Building, (Annexe), Veer Chand, Patel Path,, P.O. C.R. Building S.O. and P.S.- Mithapur, District- Patna, Bihar. 2. The Superintendent, CGST and CX, Patna (Central) Division, having his office at, Ground Floor, Chandpura Palace, Bank Road, West Gnadhi Maidan P.O. Bank Road and P.S. Gandhi Maidan, Patna, Bihar. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr.Navin Kumar Singh, Advocate Mr.Navin Kumar Singh, Advocate For the Respondent/s : Dr. K.N.Singh, ASG Mr. Anshuman Singh, Sr. SC, CGST & CX ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE PARTHA SARTHY

ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 15-07-2024 The petitioner is before this Court challenging the cancellation of registration dated 18.10.2022 at Annexure-P/3. A notice was issued as per Annexure-P/2, which it is contended was 2/3 not received. An appeal is provided from Annexure-P/3, which was not availed of. Further, the Government had come out with an Amnesty Scheme by Circular No. 3 of 2023 by which the registered dealers, whose registrations were cancelled, were permitted to restore their registration, on payment of all dues, between 31.03.2023 to 31.08.2023. The petitioner did not avail of such remedy also.

Agitated here is a cancellation of registration of the year 2022. The petitioner being not a registered dealer, there was no monitoring of his activities by the Department in the intervening period. There is no way to ascertain as to whether there was any transaction carried out during the said period. We also notice that the petitioner has not availed of the appellate remedy nor the Amnesty Scheme which was made applicable.

The petitioner asserts in the writ petition that the petitioner had no taxable income during the six month period and hence the petitioner had failed to furnish returns. If there was no business, then a nil return ought to have been filed by the registered dealer.

There is no valid cause to invoke the extraordinary remedy under Article 226 of the Constitution of India since the petitioner failed to avail the statutory remedy or to seek restoration of his registration as per Circular No: 3/2023. The law favours the 3/3 diligent and not the indolent. We dismiss the writ petition; declining exercise of discretion.

Anushka/- (K. Vinod Chandran, CJ) ( Partha Sarthy, J) AFR/NAFR NAFR CAV DATE Uploading Date 16.07.2024 Transmission Date

Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.