Revocation of Cancelled GST Registration Allowed upon payment of dues.

Summary in Key Points:

• Issue: Whether the cancellation of the assessee’s GST registration can be revoked, given their willingness to file pending returns and pay outstanding dues.
• Facts: The assessee’s GST registration was revoked. They filed a writ petition seeking to quash the revocation order and expressed willingness to comply with GST regulations by filing pending returns and paying outstanding dues with interest and penalties.
• Decision: The High Court, referring to a similar case decided earlier, directed the assessee to fulfill their commitments within four weeks. If the conditions are met, the competent authority must consider the assessee’s application for revocation and pass an appropriate order.

ANALYSIS:

The High Court ruled in favor of the assessee, providing the following directions:

• Compliance with Conditions: The assessee was directed to furnish all pending GST returns and deposit the outstanding dues, including interest and penalties, within four weeks.
• Consideration of Application: If the assessee fulfills these conditions within the stipulated time, the competent authority must consider their application for revocation of the cancellation order and pass an appropriate order within four weeks thereafter.
• Reliance on Precedent: The court relied on an earlier order dated 03.10.2024 in a similar case to arrive at this decision.

Important Note: This case demonstrates the High Court’s consistency in providing relief to taxpayers who are willing to comply with GST regulations, even after their registration has been cancelled. By allowing the assessee to rectify their non-compliance and re-enter the GST system, the court promotes the objective of encouraging tax compliance and facilitating business continuity. This approach aligns with the principles of natural justice and provides a fair opportunity for taxpayers to correct their mistakes and continue their operations.