Revocation of GST registration cancellation was allowed due to the assessee's willingness to pay outstanding dues.

Last Updated on: January 23, 2025

Revocation of GST registration cancellation was allowed due to the assessee’s willingness to pay outstanding dues.

Summary in Key Points:

Issue: Whether the GST registration cancellation can be revoked when the assessee is willing to pay all outstanding dues, including tax, interest, and penalty.
Facts: The petitioner’s GST registration was cancelled due to non-filing of GST returns for over six months. The assessee expressed willingness to deposit all outstanding dues.
Decision: The High Court directed the competent authority to consider the assessee’s application for revocation of cancellation if they deposit all outstanding dues, including tax, interest, and penalty.

Analysis:

The High Court ruled in favor of the assessee, stating that if the assessee deposits all outstanding tax dues, including interest and penalty, and submits an application for revocation of cancellation, the competent authority must consider the application and pass an appropriate order.

Important Note: This case demonstrates the High Court’s inclination towards allowing taxpayers to rectify their mistakes and continue their business operations if they demonstrate a genuine willingness to comply with GST regulations. By giving the assessee a chance to revoke the cancellation, the court encourages tax compliance and facilitates business continuity. This approach aligns with the principles of natural justice and provides a fair opportunity to taxpayers who are willing to fulfill their tax obligations.

Refer 12 GST CASE LAW 22.01.2025

HIGH COURT OF UTTARAKHAND

Kuldeep Singh

Commissioner of Commercial Goods and Service Tax

Alok Kumar Verma, J.

WRIT PETITION NO. 3401 of 2024 (M/S)

DECEMBER 13, 2024

Ankur Sharma, Adv. for the Petitioner. Mohit Maulekhi, Brief Holder for the Respondent.

ORDER

1. The present Writ Petition has been filed under Article 226 of the Constitution of India with the following prayers:-

“(i)

A writ order or direction in the nature of certiorari to quash the order dated 27.02.2023 (Annexure No. 4 to the writ petition) passed by respondent no. 2 whereby the respondent no. 2 without considering the anxiety of the petitioner illegally cancelled the Goods and Service Tax Identification Number (GSTIN) as issued by Commercial Tax Department.

(ii)

Issue a writ order or direction in nature of mandamus directing the respondents to revoke the GSTIN as issued by the respondents authority being GST Number 05HFCPS9968P1Z6 which is cancelled by the respondents due to non payment of GST returns for the period of more than six months.

(iii)

Any other suitable writ, order or direction which this Hon’ble court may deem fit and proper in the circumstances of the case.

(iv)

Award the cost of petition to the petitioner.”

2. Heard Mr. Ankur Sharma, learned counsel for the petitioner and Mr. Mohit Maulekhi, learned Brief Holder for the respondents.

3. Mr. Ankur Sharma, learned counsel for the petitioner, submitted that the petitioner is ready to deposit all the outstanding dues of tax including interest and penalty. For this purpose, the petitioner shall move an application before the Competent Authority within a week from today.

4. Mr. Mohit Maulekhi, Brief Holder has sought one week’s time from the date of production of the application to decide the same.

5. With the consent of learned counsel for both the parties, the present writ petition is disposed of with a direction that in case the petitioner deposits outstanding dues of tax including interest and penalty and submits his application within one week from today, the competent authority shall consider the application of the petitioner and pass an appropriate order as per law within a period of one week from the date of production of the certified copy of this order along with the application.