Telangana High Court permits physical revocation application where GST portal blocks delayed filing
Background of the Dispute
The matter in Kalpataru Engineering Services Vs Deputy State Tax Officer (Telangana High Court) arose from cancellation of the assessee’s GST registration on the ground of continuous default in filing returns. The registration bearing No. 36CQAPP3787K1Z9 was cancelled through an order issued in FORM GST REG-19 dated 20.06.2024.
The cancellation was specifically triggered due to non-filing of returns for a stretch of six consecutive months. After the cancellation, the assessee attempted to pursue the statutory remedy but faced a limitation hurdle.
Time-barred appeal against cancellation
- The assessee filed an appeal against the cancellation order.
- However, the appeal was submitted beyond the prescribed time limit.
- Consequently, the appellate authority rejected the appeal solely on the ground of delay, without examining the matter on merits.
Left without an effective statutory remedy due to the limitation bar, the assessee approached the Telangana High Court under its writ jurisdiction seeking relief from the consequences of registration cancellation.
Assessee’s Contentions Before the High Court
Counsel appearing for Kalpataru Engineering Services put forth the following key submissions:
No outstanding GST dues
- It was submitted that as on the date of hearing, there were no unpaid GST liabilities pending against the assessee.
- The issue, according to the assessee, was confined purely to procedural non-compliance relating to return filing, and not to any deliberate tax evasion or non-payment.
Reason for non-filing of GST returns
The assessee explained the circumstances leading to the six-month default:
- The business was conducted as a proprietorship concern.
- The proprietrix had completely depended on the accountant for filing monthly GST returns.
- Due to this reliance, the proprietrix did not personally monitor the filing status.
- The assessee claimed to be unaware of the show cause notice issued prior to cancellation.
- According to the assessee, there was no intention to default, and the lapse was inadvertent and attributable to reliance on professional assistance.
Difficulty in filing revocation application on GST portal
The assessee further pointed out the following practical difficulty:
- An attempt was made to file an application for revocation of cancellation of GST registration through the online GST portal.
- However, the portal did not allow such filing because the statutory time limit for seeking revocation had already lapsed.
- As the system was auto-blocking the request, the assessee was left with no electronic means to pursue revocation.
Relief sought from the High Court
In light of these issues, the assessee requested the following:
- Permission to submit a manual/physical application for revocation of cancellation before the jurisdictional authority.
- A direction to the respondents that such physical application be accepted and decided on merits in accordance with law, without rejecting it at the threshold on technical grounds relating to online portal restrictions.
Stand of the State Tax Department
Representing the State Tax authorities, the learned Special Government Pleader made the following submissions: