Filing of Nil Returns Continuously for More Than 6 Months’ Not a Ground for Cancellation of GST | HC Quashes Order

Case Details: Kali Shankar Enterprises v. Additional Commissioner - [2024] 158 taxmann.com 190 (Andhra Pradesh)

Judiciary and Counsel Details

• • Ravi Nath Tilhari & A.V. Ravindra Babu, JJ.

Facts of the Case

The petitioner was engaged in the business of supply of goods. It received a show cause notice for cancellation of registration on the ground of filing nil returns continuously for more than six months. However, it did not file any reply and the registration was cancelled.

It filed appeal against the order of cancellation but the same was not entertained since filed beyond the condonable delay period. It filed writ petition against the order of cancellation.

High Court Held

The Honorable High Court noted that the impugned order of cancellation was without jurisdiction and without any valid statutory ground. The ground for cancellation of registration was that assessee filed nil returns continuously for more than six months and the same was not covered under Section 29 of CGST Act or Rule 22 of CGST Rules. Therefore, it was held that the impugned order of cancellation was liable to be set aside.