Karnataka HC restores GST Registration of Petitioner subject to Filing of Returns from January 2023 [Read Order]

The Karnataka High Court has restored the GST registration of the petitioner, provided they file their returns starting from January 2023.

The petitioner has contested the validity of the order issued by respondent No.2 at Annexure-‘B’ dated 31.01.2023, which canceled the petitioner's registration, and has also challenged the order at Annexure-‘A’ dated 01.01.2024, wherein the Appellate Authority upheld the cancellation and dismissed the appeal, noting that the appeal was filed beyond the permissible period for condoning the delay.

The petitioner argued that, in exercising the power under Article 226 of the Constitution of India, the Court can directly address the correctness of the order at Annexure-'B' and, even bypassing the order of the Appellate Authority at Annexure-'A', can determine the legal validity of the cancellation order at Annexure-'B'.

It was  further submitted that the reasons leading to cancellation of registration is due to bona fide reasons and that the petitioner was not in a position to place such bona fide reasons before the Authority, as his father was unwell and was suffering from serious financial constraints.

Taking note that the order at Annexure-‘B’ was passed solely because the petitioner did not respond to the queries in the system and recognizing that the order for cancellation of registration is vague, which prevented the Authority from understanding the petitioner's stance due to the lack of a reply, the matter warrants further consideration, and the Court may evaluate the validity of Annexure-‘B’ under Article 226 of the Constitution of India in appropriate circumstances.

The single bench of Justice Sunil Dutt Yadav observed that, in light of the contentions and reasons provided for not participating in the proceedings and the lapse in not filing the GST returns, the order dated 31.01.2023 at Annexure-‘B’ is set aside and the petitioner’s registration is revived, subject to the condition that the petitioner files the returns from 31.01.2023 till date and clears all dues within four weeks from the receipt of the certified copy of the order; additionally, with the validity of Annexure-'B' decided, the order of confirmation passed by the Appellate Authority at Annexure-'A' is to be ignored and does not require adjudication.

To Read the full text of the Order CLICK HERE

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