2023 (10) TMI 1492 - HC - Indian Laws

Challenge to notice issued for cancellation of registration and the order passed - appeal dismissed for delay occasioned and also for not availing the Amnesty Scheme as offered by the State - HELD THAT - In the present case it is a fact that the order issued does not show any reason nor does the notice raise any allegation against the petitioner of not having filed returns for a continuous period of six months; as stated by the learned counsel. Only in the circumstance of no reasons having been shown we are of the opinion that the order has to be interfered with. The order also does not clearly indicate the failure to file the return despite the fact that the petitioner has not filed any reply to the show cause notice issued. Considering fact that there was an Amnesty Scheme in operation which has now expired the Annexure-1 order set aside conditionally on the specific undertaking made by the petitioner. Conclusion - The order set aside conditionally based on the petitioner s undertaking to pay the entire tax interest and penalty within one month and to file the necessary returns.

Summary

In the case before the Patna High Court, the petitioner challenged a notice for cancellation of registration and the subsequent order (Annexure-1). The appeal against this order was dismissed due to delay and the petitioner's failure to utilize the State's Amnesty Scheme, which was available from March 31, 2023, to August 31, 2023. The Government Advocate argued that the petitioner should have availed this scheme for revocation of cancellation and cannot now seek relief via a writ petition, especially given the delayed appeal.

The Court acknowledged the delay and the limitations on invoking Article 226 of the Constitution of India for extraordinary remedies. However, it noted that the order lacked reasons and did not specify any allegations, such as the failure to file returns for six months. The absence of such reasons justified interference with the order.

The Court set aside the order conditionally, based on the petitioner's undertaking to pay the entire tax, interest, and penalty within one month and to file the necessary returns. Compliance with this undertaking would result in the restoration of the petitioner's registration; failure to comply would lead to the cancellation of registration as per Annexure-1.