The court may set aside the rejection of a GST registration revocation application and allow the petitioner to file a reply to the show cause notice if reasonable grounds (like medical emergencies) are presented, provided the petitioner undertakes to pay all outstanding tax dues.

ORDER:

Heard Mr. Puppala Bharath Nandan, learned counsel for the petitioner; Mr. Dominic Fernandes, learned Senior Standing Counsel for Central Board of Indirect Taxes and Customs (CBIC), appears for respondent Nos.1 and 2 and Mr. P. Shashi Kiran, learned Standing Counsel for Central Government, appears for respondent No.3.

2. The Goods and Services Tax (GST) registration certificate of the petitioner bearing No.36AACCU1729M1Z2 was cancelled vide order in Form GST REG-19 dated 17.07.2025 against which he preferred revocation application for cancellation of registration on 14.08.2025 upon which show cause notice was issued on 17.08.2025 in Form GST REG-23 which remained unreplied leading to rejection of the revocation application on 28.08.2025. The reason for cancellation was for non- filing of returns for a consecutive period of six months. The petitioner also pursued an appellate remedy which, however, was time barred and accordingly, the appeal was not entertained as per acknowledgment in Form GST APL-02 under Rule 108(3) of the Central Goods and Services Tax Act, 2017.

3. Learned counsel for the petitioner submits that non-filing of returns was for the reason that the accountant left the firm abruptly without intimation. Petitioner could not file a reply to the show cause notice on its application for revocation due to family emergency with the Managing Director. He submits that if an opportunity is given to the petitioner to file reply by setting aside the rejection of the application for revocation, the matter could be decided on merits.

4. Learned Senior Standing Counsel for CBIC submits that the apparent reason for cancellation of registration is non-filing of returns. On its revocation application, petitioner was also asked to furnish an undertaking to pay all the outstanding taxes which it not only failed to respond, but also did not pay. Therefore, the revocation application was rejected. Petitioner also did not prefer the appeal within the time period, as a result, the same was not acknowledged as the acknowledgement says that the appeal was time barred. In such circumstances, the petitioner has not been diligent in pursuing its remedies.

5. We have considered the submissions of the learned counsel for the parties.

6. Having regard to the facts and circumstances noted above, since it appears that there were medical grounds for the inability in filing a reply to the show cause notice on its application for revocation, we are inclined to allow the petitioner an opportunity to file the reply to the show cause notice and at the same time undertake to pay the outstanding dues of tax, interest and penalty according to Rule 23 of the Central Goods and Services Tax Rules, 2017.

7. In view of the aforesaid reasons, the impugned order of rejection of application for revocation of cancellation of registration dated 28.08.2025 is set aside. Petitioner shall file its reply within a period of one week from today along with the undertaking. If such reply is filed to the show cause notice issued on his application for revocation of the order of cancellation of GST registration, the competent authority shall consider it and pass an appropriate order in accordance with law within there weeks thereafter.

8. The writ petition is accordingly disposed of. No order as to costs. Miscellaneous applications pending, if any, shall stand closed.