M/S Integrated Techno Systems vs. The Superintendent Of Central Tax

WP/11389/2023HC TelanganaGSTCNR HBHC01020528202325 April 2023Bench: N.TUKARAMJI,UJJAL BHUYAN7 pages

For Petitioner: SRI M.NAGA DEEPAKFor Respondent: SRI DOMINIC FERNANDES

AI SummaryRemanded

Facts

The petitioner, M/s Integrated Techno Systems, filed a writ petition challenging the order dated January 25, 2021, passed by the Superintendent of Central Tax (Respondent No. 1) cancelling its GST registration. The petitioner also challenged the order dated December 28, 2022, passed by the Joint Commissioner (Appeals-II) (Respondent No. 2), which dismissed the petitioner's appeal against the cancellation order. The petitioner sought a writ of mandamus to set aside these orders, alleging they were arbitrary, illegal, and contrary to law. The petitioner also filed an interim application seeking directions for the first respondent to activate its registration during the pendency of the writ petition.

Held

The Court noted that the issue raised was no longer res integra and was covered by a series of decisions of the High Court. It referred to a notification dated March 31, 2023, issued by the Central Board of Indirect Taxes and Customs (CBIC). This notification provided a special procedure for revocation of GST registration cancellation for registered persons whose registration was cancelled on or before December 11, 2022, and who failed to apply for revocation within the prescribed time under Section 30 of the CGST Act. The notification allows such persons to apply for revocation up to June 30, 2023, provided they furnish due returns up to the effective date of cancellation and pay any tax, interest, penalty, and late fee due. The Court held that in view of this notification, it would be open for the petitioner to apply for revocation of its GST registration. The first respondent was directed to take necessary action in terms of the notification. The petitioner was also directed to file the due returns as per the notification. The writ petition was disposed of accordingly.

Key Issues

1. Whether the order dated January 25, 2021, cancelling the petitioner's GST registration, and the subsequent order dated December 28, 2022, dismissing the appeal against it, are arbitrary, illegal, and contrary to law, particularly in light of subsequent notifications and judicial pronouncements? Petitioner's Contention: The petitioner argued that the orders were illegal and arbitrary. They relied on the principle that subsequent beneficial notifications should be considered. Respondents' Contention: The respondents did not present any specific arguments against the petitioner's claims in the provided text. The judgment notes that the issue was no longer res integra and was covered by previous decisions of the court.

Sections Cited

Section 148, Section 19(2)(b), Section 19(2)(c), Section 30, Section 107

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[ 3311 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY FIFTH DAY OF APRIL TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 11389 OF 2023 Between: M/s lntegrated Techno Syslems, Prop: Smt. Machapur Laxmi, Rt/o. Flat No.404, Vinoothna Archid, Ecil, Kushaiguda, Hyderabad-62. ...PETITIONER AND 1. The Superintendent of Central Tax, Nacharam-ll, Secunderabad GST. 2. The Joint Commissioner (Appeals-ll), Room No.817, 7th Floor, GST Bhavan, Basheerbagh, Hyderabad-500004. ...RESPONDEIITS Petition under Arlicle 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ or order or direction particularly one in the nature of Writ of Mandamus setting aside the impugned appeal rejection order passed by the second respondent passed in Appeal No.7212022(MD) GST/ 1301, in Order-in- Appeal No.HYD-GST-MD-AP2- 156-22-23, in DiN No.20221256DN000000D24E, daled 2811212O22, rcad with Order for Cancellation of Registration of the first respondent datd 25-01-2O21, vide Reference Number 2A36O121O42396V, of the petitioner, as arbitrary, illegal, and contrary to the law laid down by this Hon,ble Court. lA NO: 1 OF 2023 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct ,t, I the 1st respondent to activate the registration during the pendency of the above writ petition. Counsel for the Petitioner: SRI M.NAGA DEEPAK Counsel for the Respondents: SRI DOMINIC FERNANDES

- THE HON'BLE THE CHIEF JUSTICE UJJAL BHTIYAN AND THE HON'BLE SRI JUSTICE N. I WRIT PETITION I{o.11389 of2023 ORDER: eer the lton'bte the ChrcJ Justre UJjoI Bhuya^) Heard Mr. M . Naga Deepak, learned counsel for the petitioner and Mr. Dominic Fernandes, learned counsel for the respondents.

This writ petition has been liled assailing the order dated 25.01.2O2 1 passed by respondent No.l cancelling the Goods and Services Tax (GST) registration of the petitioner as well as the order-in_appeal dated 2g.12.2022 passed by respondent No.2 dismissing the appeal filed by the petitioner against the order of cancellation of registration.

Issue raised in this writ petition is no more res integra. As a matter of fact, following a series of decisions of this court, notification dated 31.03.2023 has been - issued by the Central Board of lndirect 'l'zrxc s z-rtld Customs which reads as follows: G.S.R. 246(El I. cxercisc of the powers confcrred by section 148 of the Central Goods and Services Tax Act, 2Ol7 ll2 of 2017) (hereinafter referred to as the said Act), thc Central Governrnent' on the recommenrlations o[ the Council' hereby notifics that the rcgistcred person. r'' hose registration has been cancelled under clause (b) or clause (c) of sub-seclion (2) of scction 1)9 of the said Ar:t orl or before 11-t" e 1't d2v ol December, 2022, and u'ho has iailed to apply for revocation of cancellation of such registration within the time penod specified in section 30 of the said Act as the class of registered persons who sha-ll follow the followrng special procedure in respect of revocaLion of cancellation of such registration, namelY- (a) the regrstered person may apply for revocation of calcellatior-r of such registration upto the 3oth day of Ju,ne,2023; (b) the apptication for revocation shall be filed only after furnishing the returns due upto the effective date of cancellation of registration ald a-fter payment of any amount due as tax, in terms of such returns, along with any amount payable towards ilterest, penalty and late fee in respect of the such returns; \ t

(c) no further extension of time period for filing application for revocation of carcellation of registration shall be available in such cases. B<planation: For the purposes of this notification, the person who has farled to apply for revocation of carcellation of registration withtn the time period specified in section 30 of the sard Act includes a person whose appeal against the order of cancellation of regrstration or the order rejectrng applicaLion for revocation of carrcellation of registration under section 1O7 of the said Act has been rejected on the ground of failure to adhere to the time limit specifred under sub- section (1) of section 3O 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.I shall do the needftil in terms of the aforesaid notification. In the meanwhile, petitioner shall file the due returns in terms of the aforesaid notification.

This disposes of the wrir petition I I \

l Miscellaneous applications pending, if any, shall stand closed. However, there shall be no order as to costs' //// . V. KAVITHA ASSISTANI"BEGISTRAR Qt) SECTION OFFICER To '

The Superintendent of Central Tax, Nacharam-ll, S-ecunderabad GST' Z. fne.loiht Commissioner (Appeals-ll), Room No.817, 7th Floor, GST Bhavan, Basheerbagh, Hyderabad-500004. 3. One CC to-SRl M.NAGA DEEPAK, Advocate [OPUC] +. One CC to SRI DOMINIC FERNANDES, Advocate [OPUC]

Two CD Copies PSK SW II \II

HIGH COURT DATED:2510412023 ORDER WP.No.11389 of 2023 DISPOSING OF THE WRIT PETITION WITHOUT COSTS. -., c -{ i iiL 1; i./.i - 0 3 t{AY 2U23 iJ' i; 'tl) ; 1-',:,1 i i U aJ

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.