Opportunity Granted for Revocation of GST Registration Cancellation Upon Payment of Dues

Issue: Whether an assessee can be allowed to apply for revocation of cancellation of their GST registration after the registration has been cancelled, and under what conditions.

Facts:

The assessee’s GST registration was cancelled.
The assessee filed a writ petition seeking a direction to the revenue authorities to revive their GST registration.

Decision:

The court directed that if the assessee deposits the entire outstanding dues of tax, including interest and penalty (if any), and submits an application for revocation within one week, the competent authority should consider the application and pass an appropriate order.

Key Takeaways:

This case demonstrates the court’s leniency in granting taxpayers an opportunity to rectify their defaults and seek reinstatement of their GST registration.
By allowing the assessee to apply for revocation upon fulfilling the conditions of payment of dues, the court provides a chance for the assessee to restore their registration and continue their business operations.
This decision highlights the importance of compliance with tax laws but also acknowledges the possibility of genuine oversight or difficulty in meeting obligations, offering a path for rectification.

HIGH COURT OF UTTARAKHAND

Global Manpower Solutions

State Tax Officer, State Goods and Services tax

Alok Kumar Verma, J.

WRIT PETITION (M/S) NO.3443 of 2024

DECEMBER 19, 2024

Govind Singh Latwal and Ashish Dani, Advs. for the Petitioner. Mohit Maulekhi, Brief Holder for the Respondent.

ORDER

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

“(i)

Issue a writ, order or direction, in the nature of certiorari quashing the impugned Show Cause Notice for Cancellation of Registration bearing Reference No.ZA050422008050G dated 12/04/2022 issued by the Respondent; (contained as Annexure no.2 to this writ petition).

(ii)

Issue a writ, order or direction, in the nature of certiorari quashing the impugned Order for Cancellation of Registration bearing Reference No.ZA050922002284X dated 03/09/2022 issued by the Respondent; (contained as Annexure no.1 to this writ petition).

(iii)

Issue a writ, order or direction, in the nature of mandamus directing the Respondent to revive the GST registration 05AAMFG5804GIZI of the Petitioners;

(iv)

Issue any other writ, order or direction and/or allow any other consequential relief as expedient in law, on the facts and circumstances of the case.”

2. Heard Mr. Govind Singh Latwal, learned counsel with Mr. Ashish Dani, learned counsel for petitioner and Mr. Mohit Maulekhi, learned Brief Holder for respondent.

3. With the consent of learned counsel for the parties, the present Writ Petition (No.3443 of 2024) is disposed of with a direction that in case the petitioner deposits entire outstanding dues of tax including interest and penalty, if any, and submits his application within one week from today, the Competent Authority shall considered 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.