HC Quashes Cancellation of GST Registration as Assessee Filed all Pending Returns Within Extended Due Date

Case Details: DNC Infrastructure (P.) Ltd. v. Superintendent - [2024] 160 taxmann.com 597 (Telangana)

Judiciary and Counsel Details

• • P. Sam Koshy & N. Tukaramji, JJ.

Facts of the Case

The petitioner was engaged in business of infrastructure and its GST registration was cancelled by the department on the ground of non-filing of returns for continuous period of six months. It filed writ petition against the cancellation order and contended that the cancellation of GST registration was solely based on a show cause notice issued during COVID-19 pandemic, when time for filing returns had been extended by Government.

High Court Held

The Honorable High Court noted that the cancellation order was passed on 25-8-2023 and the notice for personal hearing was issued after cancellation order. It was also submitted by the petitioner that it had approached the department for revocation of cancellation of registration and the date of personal hearing was again fixed on 10-12-2023 knowing fully well that it was a Sunday.

Therefore, the Court held that the cancellation of GST registration based solely on a show cause notice issued during COVID-19 pandemic, when time for filing returns had been extended by Government, was not sustainable as and the petitioner submitted its returns within the extended period. The Court also held that the notice for personal hearing had been deemed unwarranted as authorities were not permitted to issue such notices after cancellation order had already been passed. Thus, the Court set aside the impugned order of cancellation of GST registration and directed the department to forthwith restore GST registration of petitioner.