GST Reg. Cancelled Over Miscommunication b/w CA and DC of State Tax on Dues: Telangana HC Allows Revocation Plea [Read Order]
The Court clarified that it was not expressing any opinion on the merits of the case but noted that the cancellation appeared to have occurred due to inadvertent miscommunication rather than willful default
GST Registration
GST Registration
The Telangana High Court has allowed a petition seeking revocation of GST ( Goods and Services Tax ) registration that had been cancelled due to non-filing of GST returns, holding that the cancellation resulted from a miscommunication between the assessee’s Chartered Accountant and the State Tax Department.
The petitioner, Mohamad Jafar’s GST registration was cancelled by order dated February 5, 2024, on the ground of violation of Section 29(2)(c) of the Central Goods and Services Tax Act, 2017, for failure to furnish returns for the prescribed periods.
The petitioner contended that the entire tax liability had already been discharged, but due to a communication gap and time delay between his Chartered Accountant and the Deputy Commissioner of State Tax, the department proceeded to cancel the registration.
The Counsel for the petitioner submitted that the taxpayer was willing to approach the competent authority under Rule 23(1) of the CGST Rules, 2017, to seek revocation of the cancellation order by explaining the circumstances and providing proof of tax payment.
Understanding Common Mode of Tax Evasion with Practical Scenarios, Click Here
The State, represented by the Special Government Pleader for State Tax, did not object to the plea and suggested that the Court could permit the petitioner to move a revocation application despite the delay, quoting to the Madras High Court’s decision in Venkatesan v. Commercial Tax Officer, Villupuram I, which had allowed similar relief.
Considering the facts, a division bench comprising Chief Justice Aparesh Kumar Singh and Justice G.M. Mohiuddin granted liberty to the petitioner to file a detailed application for revocation of cancellation within two weeks and directed the competent authority to consider the same in accordance with law.
The Court clarified that it was not expressing any opinion on the merits of the case but noted that the cancellation appeared to have occurred due to inadvertent miscommunication rather than willful default.
Accordingly, the writ petition was disposed of, permitting the assessee to seek revocation of GST registration.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
