Statutory Remedy not available due to Non-Establishment of GST Tribunal: Telangana HC directs to provide Opportunity of Hearing before Cancellation of Registration [Read Order]

While considering a writ petition where the GST Registration cancelled due to non-filing of GST returns, the Telangana High Court has directed the department to provide an opportunity of hearing as the statutory remedy is not available to the assessee due to the non-establishment of GST Tribunal.

The petitioner, M/s Yaghneshwar Logistics, is a proprietary firm and is engaged in the business of courier agency services. The petitioner received a show cause notice as to why the GST registration of the petitioner should not be cancelled on the ground of failure to furnish returns for a continuous period of six months. Petitioner submitted reply on 03.10.2021 explaining the circumstances because of which the returns could not be filed for a continuous period of six months.

The department passed an order cancelling the GST registration of the petitioner stating that the petitioner neither responded to nor filed returns up-to-date.

A bench of Chief Justice Ujjal Bhuyan and Justice C.V.Bhaskar Reddy observed that “Accordingly and in the light of the above, we set aside the orders dated 05.10.2021 of respondent No.2 as well as the order dated 18.08.2022 of respondent No.1. Matter is remanded back to the file of respondent No.2 to consider the grievance expressed by the petitioner against cancellation of GST registration and thereafter pass an appropriate order in accordance with law.”

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to TaxscanPremium. Follow us on Telegram for quick updates.