Facts of the Case

The petitioner, M/s Integrated Techno Systems, Hyderabad, had its GST registration cancelled by order dated 25.01.2021, and its subsequent appeal against that cancellation was dismissed by Order-in-Appeal No.HYD-GST-MD-AP2-156-22-23 dated 28.12.2022. The petitioner challenged both orders before the Telangana High Court, also seeking interim activation of its registration pending the writ petition. By the time of hearing, the CBIC had issued a notification dated 31.03.2023 under Section 148 of the CGST Act laying down a special procedure for revocation of cancellation for registered persons whose registration was cancelled under Section 29(2)(b)/(c) on or before 31.12.2022 and who had failed to apply for revocation within the Section 30 time limit.

Issues Involved

  1. Whether the writ petition survived independent adjudication once the CBIC notification dated 31.03.2023 offered a fresh special procedure for revocation.
  2. What conditions governed the petitioner's access to that revocation route.

Petitioner's Arguments

The petitioner's counsel argued the cancellation and appellate-dismissal orders were arbitrary, illegal and contrary to precedent, and sought their quashing along with interim restoration of the registration.

Respondent's Arguments

The Department's counsel did not press a substantive defence once the CBIC's special-procedure notification dated 31.03.2023 was brought to the Court's notice, this issue by then being covered by a series of decisions of the Court.

Court Order / Findings

  • The Court noted that following a series of its own decisions, the CBIC had issued Notification G.S.R. 246(E) under Section 148 of the CGST Act, permitting registered persons whose registration was cancelled under clause (b) or (c) of Section 29(2) on or before 31.12.2022, and who had failed to apply for revocation within the Section 30 time limit (including where an appeal against cancellation/revocation-rejection failed on limitation), to apply for revocation up to 30.06.2023, subject to furnishing all due returns and paying tax, interest, penalty and late fee, with no further extension available.
  • The Court held that, in view of this notification, it would be open to the petitioner to apply for revocation of cancellation of GST registration, whereafter the respondent was to act in terms of the notification, with the petitioner in the meanwhile filing its due returns.
  • The writ petition was disposed of in these terms without costs.

Important Clarification

  • CBIC Notification G.S.R. 246(E) dated 31.03.2023, issued under Section 148 of the CGST Act, gave a one-time special procedure allowing taxpayers whose registration was cancelled under Section 29(2)(b)/(c) on or before 31.12.2022 — including those whose appeals failed purely on limitation — to seek revocation up to 30.06.2023 on clearing all dues, without any further extension thereafter.
  • Where such a notification post-dates the litigation, courts are disposing of pending registration-cancellation writ petitions by directing the taxpayer to avail this route rather than adjudicating the original grounds of challenge.

Sections Involved

  • Section 148, Central Goods and Services Tax Act, 2017 – empowers the Government to notify special procedures for specified classes of registered persons; the basis for the 31.03.2023 revocation notification.
  • Section 29(2)(b)/(c), Central Goods and Services Tax Act, 2017 – cancellation of registration for continuous default in filing returns.
  • Section 30, Central Goods and Services Tax Act, 2017 – ordinary revocation-of-cancellation provision and its time limit, extended by the special notification.

Decision – In Favour of

The decision is disposed of with directions, in favour of the Assessee — rather than deciding the cancellation appeal on merits, the Court directed the petitioner to the CBIC's special revocation procedure under the 31.03.2023 notification.

Case Details

Court: High Court for the State of Telangana at Hyderabad
Case No.: WP No. 11389 of 2023
Coram: Chief Justice Ujjal Bhuyan and Justice N. Tukaramji
Date of Order: 25.04.2023

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