KA HC Allows Superintendent to Revoke GSTIN Cancellation Order After GST Filing

If the applicant furnishes the returns then the Karnataka High Court would allow the Superintendent of Central Tax to issue orders for revocation of the cancellation of the GST registration.

The cancellation of GST registration was without due opportunity and was dictatorial seen by the single bench of Justice B. M. Shyam Prasad.

The applicant furnished that the respondent has given its presence in his business premises dated 11th Oct 2022, and has seized some invoices or documents beneath the Mahzaar. The applicant has been called by the respondent on the date of 15th Nov 2022, for the concern of the search, however, he was then get arrested.

From 16th Nov 2022, he was in judicial custody till he was considered to bail and released on the date 8th Dec 2022. On the date 17th Nov 2022, a show cause notice was issued to the applicant which alleges that he has been issued the invoices and bills excluding the actual supply of either goods or services in breach of the provision of the CGST act 2017 and the regulation to enable the false claiming or usage of the Input tax credit or tax refund.

When the applicant was in custody, the respondent cancelled the registration of GST dated 30th Nov 2022, while analyzing the case of the applicant against the cancellation he with the view that the same must be cancelled.

From November 16, 2022, until December 8, 2022, if the applicant was in custody when he was acknowledged to bail and released then the applicant cannot be served with the show cause notice on 17th Nov 2022 and he did not have provided any answer.

However, as per the show cause notice, GST registration is revoked restricting the answer of the applicant would be acknowledged. The same is undeniable for the cancellation of the GST enrollment was without due opportunity and was dictatorial.

Penal proceedings would get executed against the applicant in order to issue the bills and invoices without any actual goods or services supply, the council encountered and the cancellation does essentially be the consequence of the search operation against the applicant.

For the particular duration of filing the GST returns, the council stated that the applicant should be called for the due returns as a revocation of the cancellation situation, as objected to the cancellation through the same order without any condition.

The applicant was directed through the court for filing returns within a duration of 4 weeks from the receipt date of the certified copy and when the return would not get furnished as per that, the respondent will issue the orders for the same within a duration of 2 weeks.