Registration Restored Upon Payment of Outstanding Dues.
Issue: Whether a cancelled GST registration can be restored if the petitioner is ready to pay all balance tax, interest, and late fees, including any outstanding dues of tax, interest, and penalty.
Facts:
- The petitioner’s GST registration number was cancelled.
- The petitioner filed a writ petition seeking to quash the cancellation order and restore their GST registration number.
- The petitioner expressed readiness to pay all balance tax, interest, and late fees, and to deposit all outstanding dues of tax, including interest and penalty.
Decision:
- The court disposed of the writ petition with a direction that if the petitioner moves an application for reversal of cancellation of GST registration and deposits the outstanding dues of tax, including interest and penalty, within one week, the competent authority should consider the petitioner’s application and pass an appropriate order.
- The ruling was in favor of the assessee.
Key Takeaways:
- Payment of all outstanding GST dues is a significant factor in restoring cancelled registrations.
- Courts may direct authorities to consider applications for reversal of cancellation upon compliance with payment of dues.
- The court emphasized the need for timely action by both the assessee and the competent authority.
- Section 29 of Central Goods and Services Tax Act, 2017/Uttarakhand Goods and Services Tax Act, 2017 applied to this case.
HIGH COURT OF UTTARAKHAND
Shanvi Traders
v.
Commissioner, Uttarakhand State GST
Alok Kumar Verma, J.
Writ Petition No. 3474 of 2024 (M/S)
DECEMBER 23, 2024
Harsh Vardhan Dhanik, Adv. for the Petitioner. Mohit Maulekhi, Brief Holder for the Respondent.
ORDER
1. The registration number (GSTIN/Unique ID): 05BTCPB7310J1Z4 of the petitioner has been cancelled on 12.09.2023. The 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 calling the record of the case and quash the order dated 12.09.2023 (Annexure No.2), passed by the State Tax Officer, whereby “GST registration number 05BTCPB7310J1Z4” of the petitioner has been cancelled.
(II) Issue a writ order or direction in the nature of Mandamus directing the respondent authorities to restore the GST number of the petitioner as the petitioner is ready to pay all the balance tax, interest on it and late fee if any.
(III) To pass any other writ, order or direction which this Hon’ble Court may deem fit and proper under the facts and circumstances of the case.”
2. Mr. Harsh Vardhan Dhanik, Advocate, has submitted on instructions that the petitioner is ready to deposit all the outstanding dues of tax including interest and penalty and for the said purpose, the petitioner shall file an application before the competent authority within a week from today.
3. Mr. Mohit Maulekhi, Advocate, has requested one week’s time to decide the application of the petitioner from the date of production of the application along with a certified copy of this order.
4. With the consent of both the parties, the present writ petition (WPMS No. 3474 of 2024) is disposed of with a direction that if the petitioner moves an application for reversal of the cancellation of GST registration and deposits outstanding dues of tax including interest and penalty, if any, within one week from today, the competent authority shall consider 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 application.