Suo Moto Cancelling the GST Registration and Appeal in absence of Constitution of Appellate Tribunal: Telangana HC grants opportunity to Assessee [Read Order]

The Telangana High Court (HC) in a case where department suo motu cancelled the registration of GST, grants the opportunity to be heard by the assessee in absence of the Consitution of Appellate Tribunal.

This petition has been filed under Article 226 of the Constitution of India assailing the legality and validity of the order dated 11.12.2019 passed by respondent No.2 cancelling the Goods and Service Tax (GST) registration of the petitioner as well as the order-in-appeal dated 19.04.2022 passed by respondent No.1 dismissing the appeal filed by the petitioner against the order of respondent No.2 dated 11.12.2019.

The petitioner before us is a registered partnership firm engaged in the business of small creative artworks, set works etc.  After coming into force of the GST enactments, the petitioner got registered with the GST authority.  In this connection, a registration certificate was issued to the petitioner bearing registration No.36AAKFJ0220F1ZU.

Show cause notice dated 25.11.2019 was issued by respondent No.2 to the petitioner to cancel the GST registration on account of the non-filing of GST returns.  The reply filed by the petitioner was found to be not satisfactory whereafter respondent No.2 passed the order dated 11.12.2019 cancelling the GST registration of the petitioner.  However, it was clarified that such cancellation of registration would not affect the existing liability of the petitioner.

The petitioner preferred an appeal before respondent No.1 under Section 107 of the Central Goods and Services Tax Act, 2017.   On the ground that the appeal was filed beyond the extended period of limitation, respondent No.1 declined to admit the appeal. Further appeal before the Appellate Tribunal is provided under Section 112 of the Central Goods and Services Tax Act, 2017,  which has not been constituted in the State of Telangana. 

 Considering the decision in the case of M/s. Chenna Krishnama Charyulu Karampudi v. Additional Commissioner (Appeals-1), a two-member bench comprising of Justice Ujjal Bhuyan and Justice N Tukaramji set aside the order dated 11.12.2019 passed by respondent No.2 as well as the order dated 19.04.2022 passed by respondent No.1 and remanded the matter back for a fresh decision by law.

To Read the full text of the Order CLICK HERE

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