Allowed

Sri Annapooraneshwari Hydraulics v. the Superintendent of Central Tax

Karnataka HC20 Nov 2023WP/16535/2023

Case brief

AI extract

What is this about?

The High Court allowed a writ petition quashing the order cancelling the petitioner's GST registration. The court held the cancellation was without application of mind as the respondent relied on a lack of reply despite issuing the notice. The petitioner was directed to revoke the cancellation pending adherence to statutory rules.

What did the court decide?

Impugned order dated 03.02.2023 quashed; respondent directed to revoke cancellation of GST registration subject to filing of returns and discharge of liabilities within four weeks.

Sri Annapooraneshwari Hydraulics Vs the… — GST and Indirect Tax | Karnataka HC (2023)

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1 - NC: 2023:KHC:41559 WP No. 16535 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 20^TH DAY OF NOVEMBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 16535 OF 2023 (T-RES)

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BETWEEN:

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SRI ANNAPOORANESHWARI HYDRAULICS A PROPRIETORSHIP CONCERN REPRESENTED BY ITS PROPRIETRIX SMT. DASEGOWDA LAKSHMIDEVI AGED ABOUT 38 YEARS GROUND FLOOR,NO 112/2, 9TH CROSS DODDANNA IDNUSTRIAL ESTATE, HEGGANAHALLI NEAR PEENYA 2^ND STAGE, BENGALURU - 560091

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…PETITIONER (BY SRI. PRADYUMNA G.H., ADVOCATE)

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AND:

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Digitally THE SUPERINTENDENT OF CENTRAL TAX signed by RANGE ANWD-4 ANAND N NORTH WEST DIVISION-4 Location: HIGH 5TH FLOOR, NO. 16/1, COURT OF S.P.COMPLEX, LALBAGH ROAD KARNATAKA BENGALURU – 560027

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…RESPONDENT (BY SRI. AMIT A DESHPANDE, ADVOCATE)

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THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF MANDAMUS OR ANY OTHER

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2 - NC: 2023:KHC:41559 WP No. 16535 of 2023

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WRIT TO ISSUE ORDER BEARING REFERENCE NO. ZA290223017857D DATED 03/02/2023 (ANNEXURE-C) PASSED BY THE RESPONDENT AND TO DIRECT HIM TO REVOKE THE CANCELLATION OF THE GST REGISTRATION OF THE PETITIONER.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The petitioner’s Goods and Services Tax [ GST ] registration is cancelled by the order dated 03.02.2023 [ Annexure-C ] after issuance of the Show Cause Notice for such cancellation on 09.12.2022 and as such, the petitioner has filed this petition for quashing of the order dated 03.02.2023 and for direction to the respondent to revoke the cancellation of GST registration. The petitioner does not dispute that the Show Cause Notice dated 09.12.2022 is served on the petitioner, and the respondent does not dispute that the petitioner has not caused any reply. Further, the petitioner does not dispute that it has not availed statutory remedy, which it could have availed within the period permitted under the statute.

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NC: 2023:KHC:41559 WP No. 16535 of 2023

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Sri. Pradyumna G.H., the learned counsel

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for the petitioner, submits that the petitioner, which is a small service provider, could not file returns for the period between May 2022 and November 2022 on account of being unable to realize receipt from the service provider, but after the cancellation of the registration, the petitioner has approached the concerned and the petitioner is also permitted to file returns for the period up to March 2023.

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Sri. Pradyumna G.H. canvasses that this

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Court must intervene notwithstanding the fact that the petitioner has not availed statutory remedy because, if the cancellation of registration was prior to 31.12.2022, the petitioner could have availed the opportunity to apply for revocation without recourse to the appeal remedy until 30.06.2023 and the next extension until 30.08.2023.

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NC: 2023:KHC:41559 WP No. 16535 of 2023

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These submissions are considered in the

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light of the reasons assigned by the respondent for cancellation of the petitioner’s GST registration. The respondent, referring to the notice purportedly issued on 09.01.2022, has proceeded to cancel the petitioner’s GST registration observing that the petitioner’s reply to the notice dated 09.12.2022 and the submissions made at the time of hearing are considered when it is rather indisputable that the petitioner has not issued any reply much less the reply on 09.01.2023 and the petitioner’s representative has not appeared for any personal hearing.

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This Court is of the opinion that it is

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obvious that the cancellation of registration is without application of mind and contrary to the settled canons. The petition must be favoured directing the respondent to revoke the cancellation of the petitioner’s GST registration but on terms that

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5 - NC: 2023:KHC:41559 WP No. 16535 of 2023

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would be in consonance with the relevant rules. Hence, the following:

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ORDER

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a) The petition is allowed.

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b) The impugned order dated 03.02.2023 [ Annexure-C ] is quashed directing the respondent to revoke the cancellation of the petitioner’s GST registration subject to the petitioner filing, within four [4] weeks from the date of receipt of a certified copy of this order, the returns for all the months up to date and discharging the liabilities along with interest.

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Sd/JUDGE

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Sri Annapooraneshwari Hydraulics v. the Superintendent of Central Tax

Case brief

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Sri Annapooraneshwari Hydraulics v. the Superintendent of Central Tax

Case brief

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