In a recent ruling, the Patna High Court dismissed the petition against the Goods and Services Tax ( GST ) registration cancellation due to the petitioner’s continuous failure to use available remedies within limitation.
Rani Enterprises, the petitioner filed a petition in the Patna High Court challenging an order dated 30.12.2022 that canceled its GST registration. A show-cause notice was issued on 26.08.2022 to which the petitioner replied but did not appeal against the cancellation order within the limitation.
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The petitioner filed a writ petition before the Patna High Court to condone the delay in the appeal. On the other hand, the respondent’s counsel argued that the Bihar Goods and Services Tax Act, 2017 (BGST Act) allows three months for filing an appeal against such orders, with an additional month for delay condonation, which the petitioner did not utilize.
The respondent’s counsel further argued that an Amnesty Scheme (Circular No. 3 of 2023) was available from 31.03.2023 to 31.08.2023 allowing restoration of registration upon payment of dues, which the petitioner did not use.
The respondent counsel emphasized that the statutory limitations and amnesty provisions were sufficient for redress, which the petitioner neglected.
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The bench comprising Chief Justice of Patna, Krishnan Vinod Chandran, and Justice Partha Sarathy noted that the BGST Act provides a clear appellate framework, including condonation provisions, which the petitioner did not utilize within the timeframe.
The court explained that after the petitioner’s GST registration was canceled, they lost their status as a registered dealer. So the tax authorities had no means to monitor or regulate the petitioner’s business activities during the period of deregistration. This lack of monitoring meant that the court could not verify whether the petitioner conducted any transactions during that time, leaving an accountability gap.
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The court observed that the petitioner’s inaction in both seeking an appeal and participating in the Amnesty Scheme under Circular No. 3 of 2023 indicated a lack of diligence. The court highlighted that legal remedies favor those who act within prescribed limitations and timelines, which the petitioner failed to do.
Therefore, the court dismissed the writ petition, stating that the petitioner could not claim a remedy after disregarding available legal procedures.
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