Facts of the Case

This writ petition, Writ Petition No. 28880 of 2023, was filed under Article 226 challenging two orders of the Deputy Assistant Commissioner, Commercial Taxes — cancellation of the petitioner's GST registration No. 37BBNPG6135R3ZV vide proceedings dated 07.07.2023, and rejection of the revocation application vide order dated 04.10.2023. Registration was cancelled after a show-cause notice dated 26.06.2023 went unanswered in time; the petitioner replied only on 07.07.2023, the date of cancellation. On revocation, a field-visit report found the registered address a residential house with no business, and the revocation application was rejected on that ground after considering the petitioner's explanation. The petitioner's name is not disclosed in the judgment; only the GSTIN is stated.

Issues Involved

  1. Whether the cancellation and revocation-rejection, both founded on a field-visit finding of no business at the registered address, were illegal, arbitrary and violative of Article 14.
  2. Whether such a disputed question of fact could be adjudicated in writ jurisdiction under Article 226, or whether the petitioner should pursue the statutory appellate remedy.

Petitioner's Arguments

  • The petitioner replied to the show-cause notice on 07.07.2023 itself, and business was in fact being conducted at the registered address, which also served as the petitioner's residence.
  • A changed mobile number meant departmental communications, including notice of the field visit, could not reach the petitioner in time, explaining nobody's presence during verification on 26.06.2023.
  • Photographs showed business activity at the premises, and the petitioner's reply dated 04.09.2023 was not considered in proper perspective.

Respondent's Arguments

  • The Government Pleader submitted the petitioner had an efficacious statutory remedy of appeal under the GST Act instead of invoking writ jurisdiction.
  • Physical verification on 26.06.2023 confirmed no business was running at the registered address, and after affording a hearing, the cancellation and revocation-rejection orders were passed on that basis.

Court Order/Findings

  • The Court held that whether the petitioner was actually carrying on business at the registered address is a disputed question of fact, and the finding in the impugned orders was prima facie based on the field-inspection report.
  • Reappraisal of such evidence to determine a finding of fact is not the function of a writ court under Article 226; a petitioner with a contrary case must pursue the statutory appellate forum.
  • The petitioner's own revocation application admitted registration at his residential address on a "bill to ship to" model, undercutting the claim of settled business activity there.
  • The Court declined to entertain the writ petition and dismissed it, with no order as to costs, leaving the petitioner free to appeal.

Important Clarification

  • Disputes over whether business was actually conducted at a registered address, contested on facts, are not ordinarily amenable to writ jurisdiction; the statutory appellate remedy is the appropriate forum.
  • A taxpayer's own admissions — such as a "bill to ship to" model leaving no stock on site — can undercut a later claim of continuous business activity.

Sections Involved

  • Central Goods and Services Tax Act, 2017 and the corresponding State GST Act, 2017 — govern cancellation of registration and revocation procedure.
  • Article 14 and Article 226 of the Constitution of India — invoked to challenge the orders and to seek writ relief, respectively; both found not to assist the petitioner here.

Decision – In Favour of

Clearly in favour of the Department. The writ petition was dismissed, the Court declining to interfere with the cancellation of GST registration or the rejection of revocation, leaving the petitioner to the statutory appellate remedy.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: Andhra Pradesh High Court
  • Case No.: Writ Petition No. 28880 of 2023
  • CNR: Not available on record
  • Coram: Justice Ravi Nath Tilhari and Justice A.V. Ravindra Babu
  • Decision Date: 08 November 2023
  • Disposal Nature: Dismissed; petitioner relegated to statutory appellate remedy

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