Cancellation of GST Registration: Appeal Remedy cannot be Denied Merely Because Option of Revocation was Not Opted, rules Karnataka HC [Read Order]

The Karnataka High Court, in a recent ruling, held that an appeal against cancellation of GST registration due to non-filing of 3b cannot be rejected merely because option of revocation was not opted by the assessee.

The petitioner, Ms. Shailaja Chandrasekhar approached the High Court contending that on 13.04.2020 when there was a lockdown on account of covid 19 pandemic, the respondents passed an order revoking/canceling the GST registration of the petitioner. Subsequently, due to the covid 19 pandemic, the petitioner could not prefer an appeal within the prescribed period and on account of the extension of time granted due to the covid 19 pandemic, the petitioner preferred an appeal before the Appellate Authority on 30.03.2022. On 22.04.2022. However, the appellate authority dismissed the appeal on the ground that the appeal was not maintainable since the only option available to the petitioner was to approach the department for revocation of the cancellation and restoration of the registration.

Justice S.R.Krishna Kumar observed that Section 107 of the CGST Act, 2017 will indicate that as against an order passed by the respondent No.3 canceling the registration of GST, the petitioner has an remedy by way of appeal under Section 107before the respondent No.1-Appellate Authority.

“In this context, it is relevant to state that merely because that the petitioner has an option of seeking revocation of the cancellation under Section 30 of the CGST Act, it cannot be said that independent of the said remedy of seeking revocation of cancellation, an appeal would not be maintainable and as such, the impugned order passed by the respondent No.1-Appellate Authority summarily dismissing the appeal on the ground that it is not maintainable in view of availability of the remedy of seeking revocation of the cancellation is clearly contrary to Section 107 and Section 30 of the CGST Act and same deserves to be set aside,” the Court said.

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