Law Favours Diligent and Not Indolent: Patna HC refuses to Revoke Cancelled GST Registration [Read Order]

The Patna High Court has dismissed a writ petition challenging the cancellation of GST registration, citing  that legal remedies must be pursued within the stipulated time limit.

Chief Justice K. Vinod Chandran and Justice Partha Sarthy observed that “The law favours the diligent and not the indolent”.

 The petitioner, Rani Enterprises contested the cancellation order dated December 30, 2022, after failing to utilize the statutory appellate mechanisms provided under the Bihar Goods and Services Tax Act, 2017 (BGST Act).

Also read: Case Digest on Retrospective Cancellation of GST Registration

Under Section 107 of the Bihar GST Act, an appeal against the cancellation order could have been filed within three months, with an additional one-month window for delay condonation.

The petitioner, however, did not file the appeal by the extended deadline of April 29, 2023. Furthermore, Section 30 of the GST Act allows for an application to revoke the cancellation within 30 days of the order. Despite these provisions, the petitioner neither filed an appeal nor sought revocation within the permissible period.

Find Draft Reply Format Here : Filing an Appeal for Revocation of Cancellation of GST Registration – Intent and Importance Purposes

Adding to this lapse, the government introduced an Amnesty Scheme through Circular No. 3 of 2023, allowing dealers whose registrations were cancelled to restore their status by clearing dues between March 31, 2023, and August 31, 2023. The petitioner failed to avail this opportunity as well.

The Court observed that during the period of cancellation, the petitioner was not a registered dealer, and there was no mechanism to monitor their business activities. This lack of monitoring raised concerns about possible transactions conducted during the intervening period.

Reiterating the principle that "the law favours the diligent and not the indolent," the Court concluded that the petitioner’s failure to act within the prescribed timelines precluded them from seeking relief. Consequently, the writ petition was dismissed.

Also Read: Is GST Registration Cancellation a ‘Capital Punishment’ for Traders? Analyzing Madras HC’s Insight

To Read the full text of the Order CLICK HERE

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