GST Registration cannot be Cancelled for continuous NIL returns beyond 6 Month
Court- Andhra Pradesh High Court (Write Petition No- 31675 of 2023)
Key Issue-Operational / GST Registration Cancellation (Section 29 of GST Act
and Rule 22)
Subject- GST Registration cannot be Cancelled for continuous NIL returns.
beyond 6 months
Adjudicated by- Hon’ble Sri Justice Ravi Nath Tilhari and Hon’ble Sri Justice A
V Ravindra Babu (In Kali Shankar Enterprises Vs Additional Commissioner)
1) Section 29 of CGST Act -Cancellation or suspension of Registration
2) Rule 22 of CGST- Cancellation if registration
Facts of the matter.
➢ By the impugned order, the petitioner’s registration of GST had been
cancelled on 11.03.2022. Prior thereto, the petitioner was issued.
show cause notice dated 25.01.2022 on the following ground “filing.
nil returns continuously for more than 6 months”. The Petitioner’s
appeal against the order dated 11.03.2022 which was filed beyond.
the condonable delay period was rejected by the order dated.
06.11. 2023.Challenging the said orders, the present writ has been.
➢ Ground of cancellation is not mentioned . Even ground for proposed
cancellation mentioned in the show cause notice,” filing nil returns
continuously for more than 6 months” does not fall under any of the
clauses u/s-29 of the GST Act nor under Rule 22 of the GST Rules.
➢ Learned Counsel of the Petitioner pleaded that impugned order of
cancellation is without jurisdiction and without any valid statutory
➢ In the result, the writ petition is allowed . The impugned orders are
set aside, however, granting liberty to the respondents to initiate
fresh proceedings if so required as per Law. No order as to cost. As a
sequel thereto, miscellaneous petitions, if any pending, shall also
i)This opinion/clarification note is based on the facts provided to us and the same is
being issued without any knowledge of intent, prejudice, non-disclosure,
misrepresentation, or concealment of facts if any.
ii)We have not done investigation of correctness of facts and the limited opinion
represents our understanding of the provisions of the law on the matter. The
compliance mentioned above is not exhaustive and other compliance may also be
involved depending on case-to-case basis.
iii)The conclusions reached, and views expressed are matters of opinion based on
our understanding of the related laws, rules, notifications, Citations, circulars, etc.
iv)Pranav Kumar & Associates, Company Secretaries, its partners, associates,
employees or staff shall not be held liable for any action/ consequence arising out
of any contrary view(s) taken by any other party or statutory authority.
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