Court Buzz, GST

Karnataka HC holds Petitioner’s claim of erroneous jurisdiction to be untenable.

Case: M/s M. S. Retail Pvt Ltd. v/s The Union of India

Forum: Karnataka High Court


The Petitioner is a private limited company engaged in the business of trading in bath fittings and sanitary ware. It was duly registered as ‘taxable person’ under the provisions of the CGST Act read with the Karnataka Goods and Services Tax Act.

The Petitioner preferred a writ petition after Respondent No. 3 and 5 issued a show cause notice and subsequently cancelled the registration of the Petitioner under the CGST Act and thereafter refused to revoke the cancellation of registration.

The Petitioner also prayed for holding the provisions of Sections 29 and 30 of the CGST Act read with Rules 21, 22 and 23 of the CGST Rules as unconstitutional.

Key points

The Petitioner stated that due to COVID situation, the Petitioner was unaware of the notice and there was a complete lock down of the business from 22.03.2020. Consequently, the Petitioner could not appear before the authorities as stipulated in the notice. The authorities passed an order for cancellation of the registration of the Petitioner with effect from 06.06.2020.

The show cause notice and the order of cancellation of registration have already been challenged by the Petitioner before the HC in W.P.No.8167/2020 and cannot be challenged in the present writ petition.

The Petitioner who filed the writ petition has given up the said prayer of challenging certain provisions of the CGST Act and the CGST Rules and confined its arguments to erroneous exercise of jurisdiction by the Respondents which thie Hon’ble HC found untenable. However, the Court held the opinion that the Petitioner cannot be bereft of its right of appeal as contemplated under the CGST Act.

The Hon’ble HC held that the Petitioner was at the liberty to prefer an appeal as contemplated under Section 107 of the CGST Act, 2017, if it so desires.

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