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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
AVNEESH JHINGAN, SHUBHA MEHTA, JJ.
Shree Chaturbhuj Construction Buildcom - Petitioner
Versus
Union Of India - Respondent
Civil Writ Petition No.10804 of 2024
Decided On : 24-01-2025
| Table of Content |
|---|
| 1. cancellation of gst registration and revocation application timelines. (Para 1 , 2) |
| 2. arguments by parties regarding the revocation order. (Para 3 , 4) |
| 3. judicial observations on appeal process and factual errors. (Para 5 , 6) |
| 4. setting aside previous order for fresh appeal determination. (Para 7) |
| 5. final decision to allow writ petition. (Para 8) |
Order
1. This petition is filed seeking quashing of orders dated 31.07.2023, 18.10.2023 and 29.01.2024 cancelling the registration under the Central Goods and Services Tax Act, 2017 (hereafter ‘the CGST Act’), rejecting the application for revocation of cancellation of registration and dismissing the appeal respectively.
2. The brief facts are that the petitioner-firm was registered under the GST Acts. On failure to furnish the GST returns for continuous period of six months, the registration was cancelled vide order dated 31.07.2023. The petitioner on 24.08.2023 filed an application under Section 30 of the CGST Act for revocation of order cancelling registration. The application was rejected on 18.10.2023. The appeal was dismissed holding that application of revocation was not filed within the stipulated time and hence, the present writ petition.
3. Learned counsel for the petitioner submitted that the registration certificate was cancelled vide order dated 31.07.2023, and the application for revocation was filed within thirty days of the passing of the order.
4. Learned counsel for the respondents submits that the petitioner has remedy of appeal against the order passed by the first appellate authority. The contention is that the petitioner failed to file the returns for more than six months and consequently the registration certificate was cancelled.
5. The cancellation of registration certificate affects the right of petitioner to carry on trade. The non-functioning of the GST Tribunal has left the petitioner remediless and hence the writ petition is entertained.
6. It is not contested that the order of cancellation of registration certificate is dated 31.07.2023 and the application of revocation order was filed within thirty days of service of the cancellation order. The dismissal of appeal was based upon a factual error. The date from which the cancellation of registration was effective was taken for computing limitation where as the relevant date is of service of the cancellation order.
7. The impugned order of the appellate authority is set-aside and the matter is remitted back for deciding the appeal afresh.
8. The writ petition is allowed.
The cancellation of a GST registration can be quashed if the revocation application is timely and based on the correct service date, allowing the matter to be heard afresh.
The court asserted that statutory timelines for application revocation under the CGST Act must be strictly adhered to.
The court affirms statutory provisions allowing extension for revocation after filing returns, emphasizing adherence to procedural norms.
Orders lacking reasoning do not meet constitutional scrutiny under Article 14, allowing for judicial review and the right to respond to show cause notices.
Technical portal glitches cannot deny taxpayer's statutory right to apply for GST registration revocation within 90 days after curing defects.
The Court upheld that cancellations under the GST Act must follow due procedure, including proper notification and provision for compliance, reinforcing taxpayer rights.
Registered firms must comply with tax return submissions to maintain registration; proper notice must be given before cancellation, ensuring due process.
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