M/S. M.S. Constructions, A Partnership Firm vs. Union Of INDIA
Held
The Court held that the issue of cancellation of GST registration on grounds of non-filing of returns, and the subsequent appellate orders, is no longer res integra. The Court noted that in several previous writ petitions with similar grievances, it had interfered with such cancellations and appellate orders and had remanded the matters back to the primary authority for a fresh decision in accordance with law. Following this consistent practice, the Court set aside the order dated January 10, 2022, passed by Respondent No. 4, and the order-in-appeal dated October 18, 2022, passed by Respondent No. 3. The matter was remanded back to Respondent No. 4 for a fresh decision after providing an opportunity of hearing to the petitioner. This exercise was to be completed within three months of receiving the order. The petitioner was also permitted to submit all pending returns, including for earlier periods.
Facts
M/s. M.S. Constructions, a partnership firm engaged in construction, challenges the cancellation of its GST registration. The Superintendent of Central Tax (Respondent No. 4) issued a show cause notice on December 2, 2021, for failing to file GST returns for six months. The petitioner submitted a reply on January 2, 2022. However, on January 10, 2022, Respondent No. 4 cancelled the registration. The petitioner's appeal before the Joint Commissioner (Appeals-II) (Respondent No. 3) was dismissed on October 18, 2022. The petitioner seeks to quash both the cancellation order and the appellate order.
Key Issues
1. Whether the action of Respondent No. 3 in dismissing the petitioner's appeal and confirming the cancellation of GST registration by Respondent No. 4 is arbitrary, illegal, unjust, unreasonable, and violative of principles of natural justice and Articles 14, 19, and 21 of the Constitution of India, turning on the provisions related to cancellation of registration and appellate remedies under the GST Act. Petitioner's Contention: The petitioner argues that the cancellation of its GST registration and the subsequent dismissal of its appeal were arbitrary and illegal, violating principles of natural justice. The petitioner relied on previous High Court judgments where similar cancellations were set aside and remanded. Revenue's Contention: The judgment does not record any specific arguments made by the revenue or state respondents.
Sections Cited
Section 129
AI-generated summary — verify with the full judgment below
[ 32s5 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) SATURDAY, THE TWENTY NINTH DAY OF OCTOBER TWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE C.V. BHASKAR REDDY Between: M/s. M.S. Constructions, a partnership firm, represented by its Authorized Sionatorv and Partner Sri. Satya Murthy Aluru, S/o. Aluru, occ: Buslness, nl6. pt6t no.346, Vivekanan6a Nagai Colony, Kukatpally, Hyderabad, Rangareddy District, Telangana State-500072' ...PETITIONER AND 1. Union of lndia, rep by its Principal Secretary Central Excise and Customs, Central Secretariat, New Delhi.
The Commissioner of Central Tax, Medchal GST Commissionerate, Hyderabad.
The Joint Commissioner, (Appeals-ll), Hyderabad, O/o. GST Bhavan, 7th Floor, LB Stadium Road, Basheerbagh, Hyderabad, Telangana State-500004'
The Superintendent ofCentral Tax, Kukatpally Range, Medchal GST Commissionerate, 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 order or direction, more particular
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