Cancellation Revoked Upon Full Payment of Outstanding Dues.

Issue: Whether a cancelled GST registration can be revoked if the assessee is willing to deposit all outstanding tax, interest, and penalty dues.

Facts:

The assessee’s GST registration was cancelled.
The assessee expressed willingness to deposit the entire outstanding amount of tax, interest, and penalty.

Decision:

The court directed that if the assessee files an application and deposits all outstanding tax, interest, and penalty dues within two weeks, the Competent Authority must consider the application.
The Competent Authority was further directed to pass an appropriate order as per law within two weeks thereafter.
The ruling was in favor of the assessee.

Key Takeaways:

Full payment of outstanding GST dues is a significant factor in revoking cancelled registrations.
The court emphasized the need for timely action by both the assessee and the Competent Authority.
Clear directives are provided to expedite the process of revocation upon compliance.
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

Narayan Singh Patni Contractor

Commissioner, Central Goods and Services Tax Commissionerate

Alok Kumar Verma, J.

WRIT PETITION (M/S) NO. 3701 of 2024

JANUARY 3, 2025

Hemant Singh Mahra, 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 quashing the order dated 31.05.2024 (Annexure No.2) (Ref. No.ZA050524043378J) passed by the respondent No.2, whereby GST Registration No.05AWOPP9002D3ZJ of the petitioner’s was cancellation.

(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 GST Registration No. 05AWOPP9002D3ZJ of the Petitioner and further direction issued to the Respondent No.2 to consider the revocation 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)

If there is any delay in filling the present writ petition please condone it and accept the writ petition.”

2. Heard Mr. Hemant Singh Mahra, learned counsel for petitioner and Mr. Shobhit Saharia, learned counsel for respondents.

3. Mr. Hemant Singh Mahra, Advocate, has submitted that the petitioner is willing to deposit the entire outstanding dues of tax including interest and penalty within two weeks’ and for this purpose he shall move his application to the Competent Authority.

4. Mr. Shobhit Saharia, Advocate, has sought two weeks’ time to decide the petitioner’s application.

5. With the consent of learned counsel for the parties, the present Writ Petition (No.3701 of 2024) is disposed of with a direction that if the petitioner moves an application and deposits the entire outstanding dues of tax including interest and penalty within two weeks’ from today, the Competent Authority shall consider the application of the petitioner and pass an appropriate order as per law within a period of two weeks’ thereafter.

6. It is made clear that this Court has not expressed any opinion on the merit of the case.