Registration Revocation Granted Upon Filing Returns and Paying Dues.

Issue: Whether a GST registration cancelled for continuous non-filing of returns can be revoked if the assessee expresses willingness to file pending returns and pay outstanding dues with penalty.

Facts:

The assessee’s GST registration was cancelled due to non-filing of returns for six consecutive months.
The assessee expressed willingness to file the pending returns and pay the due taxes along with penalties.

Decision:

The court allowed the assessee to file a revocation application under Section 30(2) of the CGST Act within two weeks.
The assessee was directed to file the pending returns and pay the tax dues along with the revocation application.
The authority was directed to consider the application within four weeks.
The writ petition was disposed of.
The ruling was in favor of the assessee.

Key Takeaways:

Willingness to rectify non-compliance by filing pending returns and paying dues is a critical factor in the revocation of cancelled GST registration.
Courts can provide specific timelines for assessees to file revocation applications and for authorities to consider them.
Section 30 of Central Goods and Services Tax Act, 2017/Uttarakhand Goods and Services Tax Act, 2017 applied to this case.

HIGH COURT OF UTTARAKHAND

Ms Devendra Singh Adhikari GSTIN

Commissioner State Goods and Services Tax Commissionerate

Pankaj Purohit, J.

Writ Petition (M/S) No. 2950 of 2024

OCTOBER 24, 2024

Hemant Singh Mahra, Adv. for the Petitioner. Tarun Lakhera, Brief Holder for the Respondent.

ORDER

1. Heard learned counsel for the parties.

2. Petitioner is a proprietorship firm who runs a business under the name and style ‘M/s Devendra Singh Adhikari’ situated in Kimtoli Malla Khatera, Lohaghat, Champawat. Petitioner deals as a service provider. Petitioner is registered under the Central Goods and Service Tax Act, 2017 (for short “the CGST Act, 2017”).

3. The registration of the petitioner has been cancelled by respondent no.2 vide order dated 25.05.2025 for non filing of the GST return for a continuous period of six months.

4. Learned counsel for the petitioner contends that now the petitioner is ready to make the payment towards GST return for a period of six months as well as the penalty, if any, imposed by the respondent-department.

5. Petitioner has sought the following reliefs:-

“i. Issue a suitable writ, order or direction in the nature of certiorari calling the record of the case and quash the cancellation of GST Registration order dated 25.05.2025 Ref. No.ZA050524021158Y passed by the respondent no.2 as petitioner is ready to pay all the balance tax, interest on it and late fee if any.

ii. Issue a suitable writ, order or direction in the nature of mandamus permitting the petitioner to prefer an application U/S-30 of the UKGST/CGST Act 2017, for filing an application for revocation of the cancellation of the GSTIN 05CMRPA3509H1Z7 of the petitioner and further direct the respondent no.2 to consider the application of the petitioner in accordance with law.”

6. Learned counsel for the petitioner submits that identical controversy has been decided by this Court in WPMS No.2285 of 2024.

7. The said submission of learned counsel for the petitioners has not been opposed by learned counsel for the respondents.

8. In view of the consensus between the parties, the matter is covered by the order passed in WPMS No.2285 of 2024, the present writ petition is also decided in terms of the said order. The petitioner shall be at liberty to move an application for revocation or cancellation of the order under Section 30(2) of the CGST Act, 2017, within two weeks.

9. With this application, the petitioner shall also furnish all the GST returns, which he fails to submit and he will also deposit the outstanding tax and dues of the goods and service tax and interest with his application. If he makes such an application within stipulated period, the Competent Authority shall consider petitioner’s application and pass appropriate order as per law, within four weeks thereafter.

10. Accordingly, the writ petition stands disposed of.

11. Pending application, if any, stands disposed of.