Top Stories Karnataka HC Invokes Article 226 to Restore Society’s GST Registration Citing Email Access Issues and Public Role in Food Supply [Read Order] Considering the petitioner’s inability to access email, the Karnataka High Court set aside the order canceling GST registration By Kavi Priya – On November 10, 2024 10:37 am – 2 mins read In a recent ruling, the Karnataka High Court exercised its powers under Article 226 of the Indian Constitution to restore the GST registration of the petitioner citing genuine difficulties in accessing its email and Highlighting the society’s significant public role Chamarajanagar Taluk MSPC, the petitioner is a society registered under the Karnataka Societies Registration Act.

The petitioner is involved in supplying food supplements to Anganwadi centers and schools, performing a public service role critical to child nutrition and welfare in the community. Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here The petitioner’s GST registration was canceled due to their failure to file GST returns for six consecutive months. This non-compliance led the tax authorities to issue a show-cause notice on May 4, 2022, which culminated in the cancellation order dated December 13, 2022. Following the cancellation, the petitioner filed an appeal under Section 107 of the Central Goods and Services Tax ( CGST ) Act, 2017, before the Appellate Authority. However, the Appellate Authority dismissed the appeal because it was filed beyond the statutory limitation period (more than four months after the cancellation) without evaluating the substantive claims or circumstances of the petitioner’s delay. Aggrieved, the petitioner filed a writ petition challenging the AA’s order before the Karnataka High Court arguing that he couldn’t file returns on time due to “bonafide reasons, unavoidable circumstances, and the inoperative email. Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

The petitioner’s counsel submitted that the petitioner was ready to pay pending taxes with interest and sought the revocation of GST cancellation to continue its activities of supplying food supplements. The respondent’s counsel maintained that there was no merit in the petition. Justice S.R. Krishna Kumar heard the matter and observed that the petitioner’s appeal was dismissed solely due to being time-barred without considering the merits. Since the appeal was dismissed on procedural grounds, the original cancellation order still stood independently and could be reviewed under Article 226 of the Indian Constitution. The court acknowledged the petitioner’s inability to access their registered email, a factor that contributed to the delay in filing GST returns. It deemed this a “bona fide” or genuine compliance issue rather than an intentional evasion. Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

Recognizing the petitioner’s role in supplying food supplements to Anganwadi centers and schools, the court highlighted the importance of the petitioner’s service to public welfare. The court observed that the cancellation of GST registration could adversely impact this essential service.  The court found it appropriate to exercise its jurisdiction given the genuine compliance issues raised by the petitioner. Therefore, the court found that the petitioner should be granted an opportunity to remedy past non-compliance. It directed the tax authorities to reconsider the revocation request, allowing the petitioner to submit necessary documentation and meet outstanding obligations.