2023 (3) TMI 1000 - HC - GST

Seeking issuance of writ of mandamus (order from a court to an inferior government official ordering the government official to properly fulfill their official duties) - Cancellation of GST registration of petitioner - petitioner firm did not submit returns for a continuous period of six (6) months - cancellation of registration, without providing an opportunity of hearing - violation of principles of natural justice (audi alterem partem). HELD THAT - In similar circumstances, learned Division Bench of the High Court for the State of Telangana in M/S. CHENNA KRISHNAMA CHARYULU KARAMPUDI VERSUS THE ADDITIONAL COMMISSIONER APPEALS1 AND ANOTHER 2022 (7) TMI 82 - TELANGANA HIGH COURT having considered the fact that GST Tribunal has not been constituted under Section 109 of the CGST Act and thereby the petitioner could not be left without any remedy, held that it would be just and proper if the entire matter was remitted back to the 2nd respondent therein to reconsider the case of the petitioner and pass appropriate order in accordance with law. Needles to emphasize that the above said decision applies with all its fours to the case on hand. The petitioner preferred appeal but it was rejected - In that view of the matter and as the GST Tribunal has not been constituted as per the provisions of the Act so as to enable the petitioner to pursue his further legal remedy, this writ petition is allowed and the matter is remitted back to the preliminary authority i.e., the 4th respondent to consider the case of the petitioner and after verifying the returns submitted by the petitioner and after affording an opportunity of personal hearing pass an appropriate order in accordance with governing law and rules expeditiously but not later than two weeks from the date of receipt of a copy of this order. Petition allowed by way of remand.

Summary

Issues Involved:
The issues involved in this case are the cancellation of Goods and Service Tax (GST) registration of the petitioner firm due to non-filing of returns, dismissal of appeal on grounds of delay, and the jurisdiction of the High Court under Article 226 of the Constitution of India.

Cancellation of GST Registration:
The petitioner's GST registration was cancelled by the 4th respondent for failure to file returns for a continuous period of six months. The petitioner contended that the cancellation was arbitrary and illegal as no opportunity of hearing was provided. The petitioner sought restoration of registration, stating that returns were submitted for a specific period and tax was paid. The petitioner expressed willingness to submit returns for subsequent periods if registration is revived.

Dismissal of Appeal:
The appeal filed by the petitioner was dismissed by the 3rd respondent due to a delay of 35 days, exceeding the condonable period of one month as per Section 107 of the GST Act. The appellate authority rejected the appeal for admission based on this delay. The petitioner argued that the appeal was rejected on technical grounds, and since the GST Tribunal was not constituted, the High Court's jurisdiction under Article 226 was invoked.

High Court's Decision:
Upon review, the High Court found similarities with a previous case where the GST Tribunal was not constituted, leading to the remittance of the matter back to the primary authority for reconsideration. The High Court allowed the writ petition and directed the 4th respondent to reevaluate the petitioner's case, verifying the returns and providing a personal hearing. The High Court emphasized the need for an expedited decision within two weeks from the date of the order. The petitioner was instructed to file returns for subsequent periods upon the revival of registration, with no costs imposed.

Conclusion:
The High Court allowed the writ petition, remitting the matter back to the 4th respondent for reconsideration of the petitioner's case regarding the cancellation of GST registration. The decision highlighted the necessity for a fair review process, including verification of returns and a personal hearing, to be conducted promptly.