In a recent ruling, the Patna High Court dismissed the petition challenging Goods and Service Tax (GST) registration cancellation due to failure to avail alternate remedies within the stipulated time.
Brijesh Kumar Singh (petitioner), a proprietorship firm, challenged the order canceling his registration under the Bihar Goods and Services Tax Act, 2017 (BGST Act). The cancellation order was passed on May 6, 2023, due to the non-filing of returns for six continuous months.
The petitioner filed an appeal only on April 26, 2024, which was nearly eight months after the extended deadline for appeal had expired. The petitioner sought relief from the High Court against the order of cancellation and the subsequent denial of his appeal due to excessive delay.
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The bench comprising the Chief Justice of Patna and Justice Partha Sarthy observed the matter and submissions. The court noted that the petitioner failed to file an appeal within the time frame provided under Section 107 of the Bihar Goods and Services Tax Act (BGST Act) despite an extension being available for one additional month.
The court observed that under Section 30 of the GST Act, the petitioner could have applied for revocation of the registration cancellation within 30 days, but failed to do so.
The court further stated that the government introduced an Amnesty Scheme (Circular No. 3 of 2023), allowing canceled registrations to be restored by paying dues between March 31 and August 31, 2023, which the petitioner did not utilize.
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In light of the above observation, the court found no reason to invoke extraordinary Jurisdiction under Article 226 when alternative remedies are available and the petitioner has been negligent in availing those remedies.
The court noted that the petitioner did not dispute receiving the show-cause notice or the fact that his GST registration was canceled due to non-filing of returns for six consecutive months. Therefore, the writ petition of the petitioner was dismissed.
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