M/S. Gajula Vijaya vs. Additional Commissioner Of Central Tax And GST (Appeals- I)
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The petitioner, M/s. Gajula Vijaya, filed a writ petition challenging the cancellation of its GST registration by the Superintendent of Central Tax (Respondent No. 2) on January 4, 2022, and the subsequent order-in-appeal dated March 28, 2023, passed by the Additional Commissioner of Central Tax and GST (Appeals-I) (Respondent No. 1). The petitioner contended that the cancellation was arbitrary, illegal, and in violation of natural justice. The core of the dispute revolved around the petitioner's failure to apply for revocation of cancellation within the stipulated time frame. The petitioner sought a writ of mandamus to set aside the appellate order and the cancellation order, and to revive its GST registration.
Held
The Court noted that the petitioner's counsel placed before it a notification dated March 31, 2023, issued by the Central Board of Indirect Taxes and Customs (CBIC) under Section 148 of the CGST Act, 2017. This notification provided a special procedure for revocation of cancelled GST registrations, extending the time limit for applications up to June 30, 2023. The notification also clarified that persons who had failed to apply for revocation within the time specified in Section 30 of the Act, including those whose appeals against cancellation orders were rejected on grounds of time limitation, would be covered. Consequently, the Court held that it would be open for the petitioner to apply for revocation of its GST registration under this new notification. The Court directed Respondent No. 2 to take necessary action in terms of the notification, and in the interim, the petitioner was directed to file its due returns as per the notification. The writ petition was disposed of on these directions.
Key Issues
1. Whether the action of the respondents in confirming the cancellation of the petitioner's GST registration is arbitrary, illegal, and in violation of the principles of natural justice, thereby warranting a writ of mandamus to set aside the appellate order dated 28.03.2023 and the cancellation order dated 04.01.2022? Petitioner's Contention: The petitioner argued that the cancellation of its GST registration and the subsequent confirmation by the appellate authority were arbitrary and illegal, violating principles of natural justice. The petitioner relied on the High Court's inherent power under Article 226 of the Constitution to grant relief. Respondents' Contention: The judgment does not explicitly record any specific arguments made by the respondents. However, their actions, as challenged by the petitioner, indicate a stance that the cancellation and appellate orders were justified.
Sections Cited
Section 148, Section 29, Section 30, Section 107
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Cause title — parties, addresses and appearances
The Court mad€ tt e following: ORDER
THE HON'BLE THE CHIEF JUSTICE UJJAL BHTIYAN AND THE HON'BLE SRI JUSTICE N. TUKARAMJI WRIT PETITION No.11815 of 2023 ORDER: Per th.e Ho^'ble the Chief Justice Lljjal Bhugan) Heard Ms. T.Shivani Reddy, learned counsei for the petitioner and Mr. Dominic Fernandes, learned counsel for the respondents.
This writ petition has been filed assailing the order clated 04.01.2022 passed by respondent No.2 cancelling rhe Goods and Services Tax (GST) registration of the petitioner as well as the order-in-appeal dated 28.03.2023 passed by respondent No. 1. 3. In the hearing today, learned counsel lor the petitioner has placed before the Court a copy of notification dated 31.03.2023 issued by the Central Board of L.rdirect 'la-xes and Customs which reads as follows: G.S'R. 246(El - ln exercise of thc pouers conferred by section 148 of the Central (ioods ancl Services Tax Act, 2Ol7 (12 of 2Ol7) (hercin:rftcr refcI red
2 r( i s thc s:rid Act), thc Central Gov( rnrnerrt oII the r(cc nrnendalions o[ thc Council, hert by nr'tiies that tl e r( gisterc(l pcrson, whose registr:.tion []ils been r':rnr r:l ed unrler c:lause (b) or clause (c) t,f sub s(lctir l) (2) ()f s( ,rtron 29 of the sard Act on or before th€r J, "' day of I),,c( nrbcr. 2O2-2. and u,ho has failed to :lPpl1 for rr'r'o ariorr o[ canccllation of such registlation rvithirt the trrnc 1;r'riod s1;ccified in scction 30 of tht' sajrl Ar t ar; the clrs: oI r,:qistcrcd persons who sha]l follow tlrrr 1lllou'ing s1>t:c ,rl pr oceclurrr rn respect of revocaLioll of cznt:elliLtion ,,t su lt r('qislr atron. namcly- (ir) i r(' r( llistcrerl pcrson may apply f(rr rcvor:i rtio n Lhe ll ( ),t da) of of citrlc .J Lr r-r c ll,rrirn oI srrch registration upto -:0:,3 {l)J tt l rt)Dlicirtron lor rcvocation shall bt frled or ly irfter irrr ni rh nri thc rcturrls due upto the effet:tiv: Cat3 of ,.-.rncr ilirtron oI rcqrstration a,nd a,fter pa],rnel n- of any tjlr,)r nt (lrlc irs lrr\, in tcrms of such returns, al,l 1g \vith ,lr) i rnrLrnt p:rl irblc towards interest, penalty arnd late l( ( ur r( sllccrt o[ ilrc such returns; r( t n ) [urthcr ('\tcnsion of time period ]br. fiting a I I ) [ ) I r ( , t 1 r ( ) l r [or r|r'oc:rtion oI cancellation of relgr,tralion slri ll .,c ar ailtrlrlt rr.t such cases. Expla ration: I.or thc purposes of this notilrcati,.,n, the irc rsrr r rr'llo l-ras farlcd to apply for revoca I Lon o[ . iinc(',airon of rcgistralron wrthin th( tim(: period :pr:: il ,'r irL scc tir,:r 30 ol rhe sald Act incLudes l )crrion '.r lrosr rrppcirl arlainst tl.re order of cancellat on of l To, I\iIP rcgisuation or the order rejecting application for revocation of cancellation of registration under section I07 of the said Act has been rejected on the ground of failure to adhere to the time limit specified under su b- scction (i) of section 30 of the said Act.
In view of the aforesaid notification, it will be open to the petitioner to apply for revocation of cancellation of GST registration whereafter respondent No.2 shall do the needful in terms of the aforesaid notification- [n the meanwhile, petitioner shall file the due returns in terms ol the aforesaid notification.
This disposes of the writ petition. Miscellaneous applications pending, if any, shall stand closed. However, there shall be no order as to costs //// K.AMMAJI ASSISTANISEGISTRAR CJb SECTION OFFICER 1'TheAdditlonal-CommissionerofCentralTaxandGST(Appea|s-|)o/olhe Commrssroner of Customs and Central T-ax- (Appeals -1 ) HyderaDao 6ornrniiiionirate 7th Floor, GST Bhavan, L'B. Stadium Road Basheerbagh Hyderabad- TS-500004. 2 The Suoenntendent of Central Tax, Saroornagar Range Saroornagar GST - o,ri.,on'njngj Reoo1l GST Commissionerate, Hyderabad Telangana 3 One CC to M/S T SHIVANI REDDY, Advocate [OPUC] 4 One CC to SRI DOMINIC FERNANDES, Senior Standing Counsel for CBIC loPUCl 5 Two CD CoPtes I]\ Pr"rc,
t{lcr{ couRT DATED:2|i10412023 ORDER WP.No.11i31,5 of 2023 :i:\- : .- 1.. l'/ j 20i3 DTSPOSING OF THE WRI"I'P'ETITION WITHO,U'T COSTS /1( t qr"\ C, ^ '\ r\)",, ,t '. ,.;
Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.