Shruthikesh Industries Private Limited vs. The Union Of INDIA

Facts

The petitioners, Shruthikesh Industries Private Limited and its authorized representatives, filed a Writ Petition challenging the cancellation of their GST registration. The cancellation order, dated May 17, 2024, was issued by the Assistant Commissioner of State Tax, Auto Nagar Circle, on grounds of non-filing of returns and non-payment of taxes. The petitioners are aggrieved by this order and have approached the High Court. The case is being heard by a division bench of the High Court of Andhra Pradesh at Amaravati. The respondents are the Union of India, represented by the Secretary to the Government of India, Ministry of Finance, Department of Revenue; the Superintendent of Central Tax, Vijayawada CGST Division; and the Assistant Commissioner of State Tax, Auto Nagar Circle, Vijayawada.

Held

The Court, following its previous order in W.P.No.18308 of 2024, disposed of the present Writ Petition with specific directions. The petitioners are directed to file an application for revocation of their cancelled registration. Concurrently, they must submit draft returns that they propose to file if their registration is restored. Furthermore, the petitioners are mandated to deposit all taxes due on or before October 16, 2026. The 3rd respondent, the Registering Authority-cum-Assigning Authority, is instructed to accept this tax payment before considering the revocation application. Upon receipt of the application, the 3rd respondent shall pass orders within 15 days. If the petitioners' plea is accepted, their registration will be restored, and they will be required to file all pending returns. The court also allowed for manual filing of the application if online filing presents difficulties, with the 1st respondent obligated to accept such manual submissions. No costs were awarded.

Key Issues

1. Whether the cancellation of GST registration on grounds of non-filing of returns and non-payment of taxes, without providing adequate opportunity, is sustainable in law? The petitioners argued that they are aggrieved by the order of cancellation of their GST registration and have approached the court. They rely on a previous order of the same High Court in W.P.No.18308 of 2024, dated October 16, 2024, which disposed of a similar writ petition with specific directions. The respondents, represented by the Standing Counsel for CBIC and GP for Commercial Tax, did not appear to have made specific arguments against the petitioner's plea for restoration, as the court followed its previous order. The court's decision was primarily based on its prior judgment in a similar case.