2023 (2) TMI 321 - HC - GST

Cancellation of GST registration of petitioner - non-filing of GST returns for a continuous period of six months - reply of the petitioner was found to be not satisfactory - appeal dismissed on the ground that the appeal was filed not only beyond the period of limitation but also beyond the extended period of limitation. HELD THAT - Since no Tribunal has been constituted in the State of Telangana in terms of Section 112 of the Act, the present writ petition has been filed. Issue raised in this writ petition is no longer res integra . In M/S. CHENNA KRISHNAMA CHARYULU KARAMPUDI VERSUS THE ADDITIONAL COMMISSIONER APPEALS1 AND ANOTHER 2022 (7) TMI 82 - TELANGANA HIGH COURT , which has been followed in subsequent decisions, this Court had remanded the matter back to the file of the primary authority to reconsider and pass appropriate order after giving opportunity of hearing to the petitioner - It was held that the issue pertains to cancellation of GST registration of the petitioner. In the facts and circumstances of the case, it would be just and proper if the entire matter is remanded back to respondent No.2 to reconsider the case of the petitioner and thereafter to pass appropriate order in accordance with law. The orders are set aside and matter remanded back for fresh consideration.

Summary

Issues:
Cancellation of GST registration for non-filing of returns, dismissal of appeal due to limitation, absence of GST Tribunal in Telangana.

Analysis:
The petitioner, a proprietorship firm dealing with air conditioners, faced cancellation of GST registration by respondent No.4 for not filing returns for six months. Despite the petitioner's response, the registration was canceled on 10.12.2020. An appeal under Section 107 of the Act was made to respondent No.1, but it was dismissed on 11.01.2023 due to being beyond the limitation period. As there is no GST Tribunal in Telangana, a writ petition was filed challenging the cancellation.

The issue raised in the petition was previously addressed in a similar case where the Court remanded the matter back to the primary authority for reconsideration and a new order after providing the petitioner with a hearing opportunity. The Court highlighted the provisions of Section 107 of the CGST Act regarding the appeal period and the authority's discretion to extend it by one month for sufficient cause. Emphasizing the importance of providing a remedy to the petitioner, the Court decided to remand the matter to respondent No.2 for a fresh decision considering the petitioner's grievances.

In line with the previous decision, the Court set aside the orders of respondent No.4 and respondent No.1, remanding the case to respondent No.4 for a fresh decision following the law. The respondent was directed to grant a fair hearing to the petitioner during the reconsideration process, allowing the submission of GST returns as required by law. The writ petition was disposed of without costs, and any related miscellaneous petitions were closed as a consequence of the judgment.