Facts of the Case

Saravana Builders, a Guntur-based proprietorship, had its GST registration cancelled by an order dated 20.02.2024 in Form GST REG-19 on the ground of non-filing of returns and non-payment of taxes. The petitioner approached the Andhra Pradesh High Court under Article 226 seeking to set aside the cancellation and restore its registration, relying on a similar order passed by the same Court on 16.10.2024 in W.P.No.18308 of 2024, disposed of with specific directions for revocation.

Issues Involved

  1. Whether a GST registration cancelled for non-filing of returns and non-payment of tax can be restored through a structured revocation process.
  2. What conditions should govern such restoration to protect revenue interest.

Petitioner's Arguments

  • The cancellation of registration for non-filing of returns and non-payment of taxes should be reconsidered by following the same directions this Court had issued in a similar matter, W.P.No.18308 of 2024, allowing restoration on compliance.

Respondent's Arguments

  • No specific opposition to following the earlier precedent was recorded, the Standing Counsel for CBIC and the Additional Solicitor General appearing for the Union of India.

Court Order / Findings

  • Following its own judgment dated 16.10.2024 in W.P.No.18308 of 2024, the Court disposed of the writ petition with structured directions rather than deciding the cancellation on independent merits.
  • The Court directed the petitioner to file a revocation application along with draft returns and deposit all taxes due, whereupon the registering authority must decide the revocation application within 15 days, restoring registration if satisfied, and permitting manual filing if online filing proved difficult.
  • The writ petition was disposed of with no order as to costs, and pending miscellaneous petitions closed.

Important Clarification

  • Courts increasingly favour a structured, step-by-step revocation process — application, draft returns, tax deposit, then a time-bound decision — over simply quashing or upholding a cancellation order outright.
  • Registering authorities are directed to accept manual filing of the revocation application where the taxpayer faces difficulty filing online, ensuring procedural default does not perpetuate the cancellation.

Sections Involved

  • Goods and Services Tax Act, 2017 – governs cancellation of registration for non-filing of returns and its revocation.
  • Form GST REG-19 – prescribed order form for cancellation of registration.

Decision – In Favour of

Disposed of with directions, in part in favour of the assessee: a structured pathway to restoration was provided, conditioned on filing returns and clearing dues.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: Writ Petition No. 16747 of 2025
Coram: Hon'ble Sri Justice R. Raghunandan Rao and Hon'ble Smt Justice Sumathi Jagadam
Date of Order: 09.07.2025

Link to Download the Order

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