Telangana High Court Allows New Revocation Plea After Cancellation of GST Registration

The Telangana High Court in M/s. CBR Logistics v. Deputy State Tax Officer & Others has clarified that an assessee whose GST registration has been cancelled for non-filing of returns can still invoke the statutory remedy of revocation, even where an earlier appeal against rejection of revocation was dismissed as time-barred.

Without disturbing the earlier orders passed by the GST authorities and the appellate authority, the Court permitted the assessee to file a fresh revocation application under the relevant GST Rules, subject to clearing any unpaid tax dues. This decision reflects a balanced judicial approach that upholds statutory timelines while still enabling business continuity where the assessee is willing to comply with Rule 23 requirements.

Background of the Dispute

Cancellation of GST Registration

The assessee, M/s. CBR Logistics, held a GST Registration Certificate bearing GSTIN No. 36AAQFC8200L1Z6. The registration was cancelled through an “Order for Cancellation of Registration” issued in Form GST REG-19 dated 10.02.2025. The cancellation was based on:

  • Non-filing of GST returns for the relevant tax periods; and
  • Alleged violation of Section 29(2)(c) of the Telangana Goods and Services Tax Act, 2017.

The Department treated the continuous default in filing returns as sufficient ground to invoke the power of cancellation under the said provision.

Initial Revocation Attempt and Appeal

Following cancellation:

  1. Revocation Application

    • The assessee submitted an application seeking revocation of the cancellation order.
    • This application was rejected by the Proper Officer on 23.05.2025.

  2. Belated Appeal

    • The assessee then approached the appellate authority by filing an appeal against the rejection of revocation.
    • The appeal was admittedly filed beyond the prescribed limitation period.
    • Consequently, the appellate authority dismissed the appeal on 28.11.2025 solely on the ground of delay.

With the appellate remedy exhausted on account of limitation, the assessee approached the Telangana High Court by way of writ proceedings.

Case Set-Up Before the High Court

Assessee’s Position

Counsel for the assessee argued that:

  • There were no outstanding GST dues payable by the assessee.
  • Returns could not be filed due to acute financial distress and operational setbacks, including:
    • Serious breakdown of vehicles used in business; and
    • Lack of new transport or logistics contracts, leading to substantial losses.
  • The non-filing of returns was not a willful or deliberate act of defiance, but a consequence of financial incapacity and business downturn.
  • The assessee’s primary objective was to restore its GST registration so that its business activities could continue lawfully under the GST regime.

The assessee, therefore, sought judicial intervention to secure an opportunity to regularize compliance and regain its registration.

Stand of the State Tax Department

On behalf of the State Tax Department, the learned Special Government Pleader for State Tax submitted that: