Karnataka HC Directs To File a Revocation Application: Cancellation of GST Registration on Non-Filing of Tax Returns

In the recent GST notification regarding the revocation of GST registration, the Karnataka High Court has granted permission to file cancellation applications. Applications filed outside the time limit can now be resubmitted if the cancellation of registration occurred before December 31, 2022.

Mr. Anandkumar Ramdeo Singh, the petitioner, has filed a writ petition to cancel an order issued in an appeal. The petitioner requests the court to direct the respondents to acknowledge the payment made by the petitioner and considers the impugned orders as arbitrary, illegal, and in violation of the principles of natural justice. 

The petitioner has provided supporting documents as Annexures A and B. On July 11, 2022, the applicant challenged the order issued by the second respondent regarding the revocation of their GST registration, citing the provisions of Section 29 of the Central Goods and Services Tax Act, 2017.

According to the aforementioned section, GST registration can be revoked or suspended if it is obtained through bogus means, willful misstatement, or suppression of facts. 

In addition, it is important to note that the proper officer cannot refuse the registration without giving the concerned individual an opportunity to be heard. Subsequently, the applicant submitted a petition to the first respondent under Section 112 of the CGST Act. 

However, the petition was disposed of on the grounds of limitation. It is noteworthy that the applicant did not file any application for the revocation of the cancellation.

As per the GST notification issued on March 31, 2023, in cases where the cancellation of registration falls under the provisions of section 29(2)(b) or (c) of the CGST Act and the cancellation occurred prior to December 31, 2022, individuals who did not file a revocation application have the opportunity to file an application following a specific procedure.

According to the specified mechanism, the applicant would be eligible to apply as per the newly notified provisions. Since the cancellation of the applicant's GST registration occurred before December 31, 2022, a single judge bench presided by Mr. Justice B M Shyam Prasad ruled that the petition was dismissed, allowing the petitioner to utilize this remedy, with the necessary exceptions applied.