Facts of the Case

The petitioner, Sambasiva Rao Thokala, a proprietorship registered with the Tenali GST Range under the Guntur CGST Commissionerate, had his GST registration first suspended (order dated 14.01.2023) and then cancelled (Form GST REG-19, order dated 26.04.2023) on the ground that he had not filed returns continuously for six months. He challenged both orders, citing ill-health as the reason for non-filing, and stated that he had since filed all pending returns up to the date of cancellation.

Issues Involved

  1. Whether the GST registration cancellation for continuous non-filing of returns could be set aside once the taxpayer filed the pending returns after cancellation.

Petitioner's Arguments

  • Due to ill-health, he could not file GST returns on time, but after the cancellation order he filed all pending returns up to the date of cancellation, and the authorities should now be directed to restore his registration.

Respondent's Arguments

  • No detailed contest is recorded beyond confirming the factual basis for cancellation — continuous non-filing of returns for six months.

Court Order / Findings

  • The Court did not examine or rule on the correctness of the suspension or cancellation orders themselves.
  • It disposed of the writ petition by giving the petitioner liberty to approach the respondent authority with an application for restoration of registration.
  • The first respondent was directed to consider any such restoration application and pass appropriate orders within one week of receipt, communicating the outcome to the petitioner.

Important Clarification

This case is a common and instructive pattern in GST practice: registration cancelled for non-filing of returns is not automatically restored by the High Court on a writ petition; instead, courts typically relegate the taxpayer to the departmental restoration/revocation mechanism once pending returns are filed, without independently adjudicating whether the original cancellation was justified. Businesses facing cancellation for non-filing should file all pending returns immediately and apply for revocation through the proper channel rather than assume a court will simply reverse the cancellation.

Sections Involved

  • Central Goods and Services Tax Act, 2017 — provisions governing registration cancellation for continuous non-filing of returns (Section 29).
  • Form GST REG-19 — order of cancellation of registration.

Decision – In Favour of

Disposed of without a ruling on the merits of the cancellation; the petitioner was given liberty to seek restoration of registration from the departmental authority, who was directed to decide within one week.

Case Details

  • Court: High Court of Andhra Pradesh at Amaravati
  • Case No.: Writ Petition No. 24982 of 2023
  • Coram: Hon'ble Mr. Justice U. Durga Prasad Rao and Hon'ble Mr. Justice A.V. Ravindra Babu
  • Date of Order: 4 October 2023

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