Karnataka HC Orders Officials to Restore Petitioner’s GST Registration After Unjust Cancellation

The Karnataka High Court in a judgment asked the GST ( Goods and Services Tax ) Department to restore the GST registration of the applicant within four weeks, following an unjust cancellation. The court remarked that the department committed a factual error.

The applicant, A R Venugopal who suffered from the GST registration cancellation as of the alleged non-submission of a reply to a SCN on October 20, 2020, contested the same decision in court.

The applicant asked to either quash the order of cancellation, direct reconsideration for revocation or condone any delay in filing the revocation application.

The counsel of the applicant claimed that the cancellation had consequences in difficulty since the applicant due to improper health was unable to operate the business without GST registration, which resulted in a late answer. Even after providing a response to the Show Cause Notice (SCN) dated November 3, 2020, the GST registration was cancelled incorrectly due to non-response.

Answering that the Additional Government Advocate repeated distinct contentions requested in the statement of objections and furnished that no merit in the petition was there and it is obligated to get dismissed.

Read Also: GSTIN Cancelled Due to Non-filing Returns, Karnataka HC Orders for Filing Revocation as per GST Notification

Justice S R Krishna Kumar assessed the cancellation order and concluded that the GST Department had made an error in fact by canceling the registration after they had obtained the petitioner’s reply.

It was remarked by the court that the same error asked to set aside the order of cancellation and reinstating the GST registration, subsequently, the HC asked the GST registration to be restored within 4 weeks, furnished that the applicant files all the due returns and pays the obligated taxes.