Registration can be restored upon payment of tax, interest, and penalty.

Registration can be restored upon payment of tax, interest, and penalty.

Issue: Whether an assessee’s cancelled GST registration should be restored upon payment of dues, based on the precedent set in Sheikh Mohammad Yousuf v. Union Territory of J & K.

Facts:

• The assessee filed a petition seeking restoration of their cancelled GST registration.
• The assessee relied on the judgment in Sheikh Mohammad Yousuf v. Union Territory of J & K, where the court restored the assessee’s registration upon payment of tax, interest, and penalty.

Decision:

• The court, in view of the judgment in Sheikh Mohammad Yousuf v. Union Territory of J & K, disposed of the petition.
• The court directed the assessee to approach the respondent authority.
• The court directed the respondent authority to restore the assessee’s registration immediately, subject to the completion of requisite formalities.

Key Takeaways:

• Reliance on Precedent: Courts often rely on precedents set by higher courts or coordinate benches in similar cases.
• Restoration Upon Payment of Dues: The judgment reinforces the principle that GST registration can be restored upon payment of outstanding dues, including tax, interest, and penalty.
• Requisite Formalities: The restoration is subject to the completion of necessary formalities, ensuring compliance with procedural requirements.
• Immediate Restoration: The court’s direction for immediate restoration highlights the importance of timely action in such matters.
• Consistency in Judicial Decisions: This decision ensures consistency in judicial decisions and provides clarity to taxpayers regarding the restoration of registration.
• The court is reinforcing the idea that payment of dues is the primary concern, and that registration should be restored when those dues are paid, while also following precedent.