Super Care Gardens vs Superintendent of Central Tax

Can consistent ill-health be valid reason for non filing of GST Revocation Application? What could be the reason that out of two Partners, one was suffering from ill-health and other partner also didn’t filed Revocation Application within time? Telengana High Court answers this mystery. Super Care Gardens, Partnership Firm’s GST Registration was cancelled due to Non-Filing of GST Returns on 26-Nov-2019. Show Cause Notice was issued on 14-Nov-19 which was duly replied on 23-Nov-19 but the Cancellation Order was passed without considering it on 26-Nov-19 Firm approached High Court stating that they could not file appeal U/s 107 because of surgery of their Managing Partner ill-health. He had to undergo Spinal Surgery on 06-Apr-2020 following consistent ill-health. Because of failure of Spinal Surgery, blood circulation to both his legs has stopped. As a result he suffered from gangrene for which both his legs had to be amputated above knee level.

1. Fleard N{s. K.IJrna, leamed counsel for the petitioner; IvIr. B.Narsimha Sarma, leamed counsel for respondent No.1; IvIr. K.Raji Reddy, leamed Senior Standing Counsel, Commercial Tax, for respondent No.2; and Mr. B.Mulfierjee, leamed counsel for respondent No.3.

2. By filing this petition under Article 226 of the C-orstitution of India, petitioner seels quashing of the order dated 26.11.2019 passed by respondent No.1 cancelling the Goods and Services Tax (GST) registration o[ the petitioner.

3.Petitioner is a partnership firm engaged in the btrsiness of providing horticulture and nursery rclated services to M/s. Nuclear Fuel Complex, Hyderabad. Petitioner is registered under the Central Goods and Services Tax Act, 2017 piefly ‘the CGST AcC t hereinaiter) as well as under the Telangana Goods and Services Tax II Act, 2Ol7 (briefly ‘the TGST Act’ hereinafter). GST registration certificate was issued to the petitioner on )8.07.2017 beanng registration No.GSTIN 36AC\FS 1432MIZR.

4.On the ground that petitioner had not filed all the GST retums, a showcause notice dated l4’ll’2019 was issued by respondent No.L to the petitioner to *4rich petitioner submitted replyon 23.ll.2olg. However, the reply of the petitionerwas not accepted whereafter, respondent No’1 passed the order dated 26.ll.2019 cancelling the GST registration of the petitioner on the ground that petitioner had not filed all the GST rerurns’.

5.Leamed counsei for the petitioner submits that against the order dated 26.11-2019 petitioner could not file the appeal as provided under Section 107 of the CGST Act because of a surgery which the Managing Panner- Mr’ K’Isreal had to undergo; he had undergone spinal sqgery on 06’04’2020 following consistent illheahh; because of failure of the spinal surgery blood circulation to both his legs had stopped as a result of *fiich he suffered from gangrene for t4rich both his legs had to be amputated above the knee Ievel.

6.It may be rnentioned that the other partner of the petitioner is the u,ife of the managing panner himself, who because ol’ the health condition of her husband could not devote much attention to business dealings of the petitioner. It is under such circumst:rnces that the present writ petition has been filed seeking the relief as indicated above.

7.After hearing leamed counsel for the parties and on due consideration, we are of the view that it would meet the ends of justice if the rnatter is remanded back to respondent No.1 for taking a fresh decision in accordance with law.

8.Accordingly, we set aside the order dated 26.1.1.2019 passed by respondent No.l and remand the matrer back to the file of respondent No.1 to consider the case of the petitioner against cancellation of GST registration afresh and thereafter pass appropriate order in accordance with law. Needless to menrion rhat while passing sr”rch order, respondent No.1 shall give due opportunity of hearing to the petitioner.

9.The above exercise shall be canied out within a period of two months from the date of receipt of a copy of this order. Furtheq it would be open to the petitioner to submit all the GST returns and pay the pending tax arearc as per the smtute.

10.This disposes of the \7rit Petition. No costs. As a sequel, miscellaneous petitions, pending if any, stand closed.

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Super Care Gardens

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Telengana High Court

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GST Case Law