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

Issue: Whether an assessee can be allowed to file an application for revocation of cancellation of GST registration after the cancellation order has been issued, and under what conditions.

Facts:

The petitioner’s GST registration was cancelled.
The petitioner filed a writ petition seeking to quash the cancellation order and to be allowed to file a representation against it.
The petitioner expressed willingness to pay all outstanding tax dues, interest, and penalties.

Decision:

The court disposed of the writ petition with specific directions.
The court directed that if the petitioner deposits the entire outstanding tax dues, including interest and penalty, within one week, and also submits an application for revocation of cancellation within the same timeframe, the authorities shall consider the application.

Key Takeaway:

This case demonstrates the court’s leniency in granting taxpayers an opportunity to rectify their defaults and seek revocation of GST registration cancellation. By allowing the petitioner to file a belated application 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

Faizal Shekh Mansuri

Commissioner, Central Goods and Services Tax Commissionerate

Alok Kumar Verma, J.

WRIT PETITION (M/S) NO.3508 of 2024

DECEMBER 19, 2024

Tarun Pande, Adv. for the Petitioner. Shobhit Saharia, Adv. for the Respondent.

ORDER

Alok Kumar Verma, J.- Present Writ Petition has been filed under Article 226 of the Constitution of India with the following prayers:-

“(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 12/09/2023 (Annexure No.1 to W.P.) 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 a representation before the Respondent No.2 against the order of the cancellation of the GSTIN 05ERRPM6378F1Z6 of the Petitioner and further direct the Respondent No.2 to consider the application of the Petitioner in accordance with law.

(iii) Issue any other writ order or direction which this Hon’ble Court deem fit and proper, in the circumstances of the present case.

(iv) Award the cost to the petitioner throughout.”

2. Heard Mr. Tarun Pande, learned counsel for petitioner and Mr. Shobhit Saharia, learned counsel for respondents.

3. With the consent of learned counsel for the parties, the present Writ Petition (No.3508 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 two weeks’ from the date of production of the certified copy of this order along with the application.