The Karnataka High Court allowed the petitioner to prefer an appeal as contemplated under Section 107 of the CGST Act, 2017 against cancellation of Goods and Service Tax (GST) registration by Assistant Commissioner of Commercial Taxes, Bengaluru , if it so desires within 30 days from the date of order of High Court.
Facts of the case:
- The petitioner, M/s M.S. Retail Private Limited is engaged in the business of trading in bath fittings and sanitary ware. It was duly registered as a ‘taxable person’ under the provisions of the CGST Act read with the Karnataka Goods and Services Tax Act (KGST).
- It has been regularly filing its monthly returns disclosing the trading transactions and also paying the GST tax liability within the due dates.
- The respondent authority issued the show cause notice to the petitioner on the ground that the petitioner had violated certain provisions of the CGST Act and the Rule. However, due to COVID-19 situation, the petitioner was unaware of the notice and there was a complete lock down of the business. Consequently, the petitioner could not appear before the authorities as stipulated in the notice.
- Assistant Commissioner of Commercial Taxes, Bengaluru passed an order for cancellation of the registration of the petitioner.
- On realizing that its registration was cancelled, the petitioner submitted a request to respondent authority to revoke the order of cancellation. As there was no response from the authorities the petitioner filed writ petition before High Court wherein it prayed to quash the order of ‘cancellation of registration’ passed by the respondent.
- The High Court adjudged that the petitioner may file revokation application which was filed by petitioner and rejected by the Respondent against which another writ is filed before the High Court.
- It was submitted on behalf of the petitioner that under Section 30 of the CGST Act, 2017 petitioner can approach appropriate authority seeking revocation of cancellation of registration and authority can examine the same and pass appropriate orders
Karnataka High Court; Ruling
The Single Judge bench of Justice M.I. Arun dismissed the writ petition and held that petitioner is at liberty to prefer an appeal as contemplated under Section 107 of the CGST Act, 2017 against cancellation of Goods and Service Tax (GST) registration , if it so desires within 30 days from the date of order of High Court.
It was also made clear in the order that no opinion has been expressed upon merits of the case. If the petitioner prefers an appeal, it is for the appropriate authority to take a decision.
READ / DOWNLOAD ORDER:
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
