GST Update

 Desk of CA. Praveen Sharma – 1125  Series (CAPS) 

Karnataka High Court IN THE CASE OF Case  Sri Mahadevappa v. Principal Chief Commissioner of Central Tax

Karnataka HC: No interference with Single Judge’s order in GST cancellation dispute

 Outcome: In favour of Respondent.

 Dispute: The appellant challenged cancellation of his GST registration relating to a hotel business.

Reason for cancellation: His wife, who owned the land on which the hotel stood, informed the authorities that she had not consented to GST registration in her husband’s name.

Single Judge’s decision: The Single Judge declined to entertain the challenge because a statutory appeal was available under Section 107 of the CGST Act.

 Appellant’s contention: He alleged mala fide action, pointed to cancellation of his registration twice, and argued that the statutory remedy was ineffective in the circumstances. 

Issue before Division Bench: Whether the Single Judge’s direction to pursue the statutory appeal warranted interference in an intra-court appeal.

 Principle applied: Interference requires demonstrable error or perversity in the Single Judge’s order; another possible view alone is insufficient.

Court’s finding: The Single Judge’s order rested on cogent reasons and disclosed no perversity. The appellant had also not pursued the available appellate remedy.

Decision: The Division Bench declined interference, leaving the appellant’s substantive contentions open before the statutory appellate authority.

Procedural protection: An appeal filed within the period stipulated by the Court was directed to be considered on merits without reference to delay.

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Best Regards,

CA Praveen Sharma

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