Rameshkumar Amrutlal Panchal vs. State Of Gujarat
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The petitioner, Ramesh Kumar Amrutlal Panchal, filed a Special Civil Application challenging an order dated April 11, 2025, and an order in Form GST REG-19 dated August 23, 2024, which cancelled his GST registration effective January 1, 2024. The cancellation was based on the petitioner's failure to file GST returns from January 2024 to December 2024, as per Section 29(2)(c) of the GST Act. The petitioner submitted an affidavit demonstrating that although returns were not filed, the tax liability for the period was computed and discharged by depositing the amount in the Electronic Cash Ledger. The petitioner sought to quash the cancellation order and restore his registration to resume business.
Held
The Court permitted the petitioner to file the pending GST returns from January 1, 2024, till date within a period of two weeks. The Court held that if the filed returns were in accordance with law and the petitioner further paid any outstanding demand raised by the respondent forthwith, then the order of cancellation of registration would stand revoked. The reasoning was based on the submissions of both parties and the fact that the petitioner had already deposited the outstanding tax with interest, as if the returns had been filed. This approach was taken in the interest of justice. The petition was disposed of accordingly.
Key Issues
1. Whether the cancellation of GST registration under Section 29(2)(c) of the GST Act is justified when the petitioner has discharged the tax liability by depositing the amount in the Electronic Cash Ledger, despite not filing the returns for the period January 2024 to December 2024? Petitioner's Contention: The petitioner argued that the cancellation order was without jurisdiction and authority of law. He contended that he had already deposited the requisite tax along with interest in the Electronic Cash Ledger, which could be verified by the authorities. He was ready and willing to file the pending GST returns, even manually, within a specified period. He relied on the fact that the tax liability was discharged. Revenue's Contention: The respondent-authority submitted that if the petitioner was permitted to file the GST returns as required under Section 29(2)(c) of the GST Act, they would process the same and determine the tax liability after considering the deposit made by the petitioner in the Electronic Cash Ledger.
Sections Cited
Section 29(2)(c)
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Cause title — parties, addresses and appearances
ORAL ORDER (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)
Heard learned advocate Mr. Hirak Shah for the petitioner and learned Assistant Government Pleader Mr. Shrunjal Shah for respondents.
Learned advocate Mr. Hirak Shah has filed affidavit of the petitioner to place on record a copy of the Electronic Cash Ledger to demonstrate that though the petitioner has not filed GST Returns from January, 2024 to December,2024, tax liability has been duly computed by the petitioner based on the available record and transaction, and such liability has already been discharged by way of depositing the same in Electronic C/SCA/11902/2025 ORDER DATED: 18/09/2025 Cash Ledger by the petitioner. The said affidavit is ordered to be taken on record.
This petition is filed with the following prayers: “A. Issue appropriate writ or order or direction to quash and set aside the Impugned Order dated 11.04.2025 (Annexure A) and order issued in Form GST REG-19 dated 23.08.2024 (Annexure B) and thereby restoring the petitioner’s GST registration in order to enable the petitioner to commence his business; B. Issue a Writ of certiorari or any other appropriate Writ/order/direction holding that the Impugned Order dated 11.04.2025 and order issued in Form GST REG-19 dated 23.08.2024 are without juri iction and without authority of law. C. Pending notice, admission and final hearing of this petition, to direct the Respondents to not proceed within recovery of demand in accordance with the impugned order; C/SCA/11902/2025 ORDER DATED: 18/09/2025 D. Ex parte ad interim relief in terms of prayer C may kindly be granted; E. Such other and further relief as deemed fit in the facts and circumstances of the case may kindly be granted in the interest of justice for which act of kindness the petitioner shall forever pray.”
The basic contention of the petitioner is that the petitioner could not file GST returns for the prescribed period and as such, registration of the petitioner is cancelled by the respondent pursuant to the show cause notice dated 07.06.2024 by order dated 23.08.2024 w.e.f. 01.01.2024 by invoking section 29(2)(c) of the GST Act as the petitioner has not filed returns thereafter.
Learned advocate Mr. Shah submitted that the petitioner is ready and willing to file GST returns as the petitioner has already deposited the requisite tax along with interest through Electronic Cash Ledger as stated in the affidavit filed by the petitioner which can be verified by the respondent-authorities. C/SCA/11902/2025 ORDER DATED: 18/09/2025
Learned AGP Ms. Shah, on the other hand, submitted that if the petitioner is permitted to file the GST returns as required under section 29(2)(c) of the GST Act, the respondent- authority shall process the same and determine the tax liability in accordance with the provisions of the Act after considering the deposit made by the petitioner in the Electronic Cash Ledger, as stated in the affidavit filed today.
Learned advocate Mr. Shah for the petitioner submitted that if permitted, the petitioner shall file the pending GST Returns manually from 01.01.2024 till date within a period of two weeks from today.
Considering the above submissions that there is no other contention raised on behalf of the petitioner as well as the respondent and considering the fact that the petitioner has already deposited the outstanding tax with interest as if the returns would have been filed, in the interest of justice, the petitioner is permitted to file returns, as prayed for by the respondent authority and if the same are in accordance with C/SCA/11902/2025 ORDER DATED: 18/09/2025 law and the petitioner is further directed to pay outstanding demand, if any raised by the respondent forthwith, then in that circumstances, the order of cancellation shall stands revoked. The petition is accordingly disposed of. No order as to costs. (BHARGAV D. KARIA, J) (PRANAV TRIVEDI,J) JYOTI V. JANI Original copy of this order has been signed by the Hon'ble Judges. of Gujarat on 23/09/2025 16:56:51
Reproduced from the public record of the Gujarat High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.