Andhra Pradesh HC Grants Assessee Opportunity To Seek Revocation Of Registration Cancellation Missed Due To Ongoing Insolvency Proceedings

The Division Bench of Justices R Raghunandan Rao and Harinath N observed that because the assessee had to go through the insolvency proceedings under the IBC, 2016, they should be given some leeway to help get their business back on track.

The assessee/petitioner, engaged in the real estate business, was registered under the GST Act. However, since 2020, the assessee has neither filed returns nor paid taxes. As a result, the department/respondent issued a show cause notice and subsequently cancelled the assessee's GST registration. At the same time, the assessee faced insolvency proceedings under IBC.

The assessee claims that due to these insolvency proceedings, they were unable to seek the revocation of the registration cancellation or take advantage of the opportunity for revocation.

The assessee submitted that the assessee has now come out of the insolvency proceedings, and is willing to file the returns for all the periods from the date on which the last return had been filed and to pay any tax due and payable. The assessee has now revived its real estate ventures and needs a registration certificate so as to receive payments from its customers.

The bench stated that “……..the assessee/petitioner company had to undergo the CIRP process under the Insolvency and Bankruptcy Code, 2016, certain leeway would have to be granted to the assessee to bring its business back on the rails…….”

In view of the above, the bench allowed the assessee to file an application for the revocation of their registration cancellation by 05.11.2024. The bench also directed the assessee to deposit any remaining taxes due by the same date.

Counsel for Petitioner/ Assessee: Pasupuleti Venkata Prasad

Case Title: M/s Ramakrishna Housing Private Limited v. The Assistant Commissioner of State Tax and Others

Case Number: WRIT PETITION NO: 18308/2024