Court Orders Deposit of Tax Difference Under Protest for Registration Restoration

The court directed the petitioner to deposit the difference in tax amount under protest within two weeks for registration restoration. The application for re-registration was to be considered within a further two weeks. The judgment aimed to facilitate compliance with tax obligations, registration reinstatement, and continuation of business activities promptly.

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Issues:
1. Incorrect Service Tax liability shown in GST Return-3 leading to cancellation of registration.
2. Petitioner's request for restoration of registration to file subsequent returns and continue business.

Analysis:
1. The petitioner filed a petition due to inadvertently showing a Service Tax liability of Rs. 33,88,979 instead of Rs. 3,88,979 in the GST Return-3 for July. This error led to a discrepancy in tax liability between State and Centre, preventing the filing of subsequent returns and resulting in the cancellation of registration.

2. The petitioner, through their counsel, expressed the inability to pay the tax due to the registration cancellation, highlighting the need for registration restoration to enable timely filing of returns and continuation of business operations. The petitioner sought permission to pay the tax liability dues amounting to Rs. 30 lakhs under protest to expedite the registration restoration process and resume business activities.

3. After perusing the documents and considering the petitioner's submissions, the court directed the petitioner to deposit the difference amount of tax under protest within two weeks before the relevant authorities. Upon deposit, the application for re-registration was to be considered within a further two weeks, taking into account the factual circumstances of the case. The deposited amount was to be subject to the order passed by the concerned authority, ensuring compliance with the legal process.

4. The court, acknowledging the petitioner's willingness to rectify the tax discrepancy and proceed under protest, disposed of the writ petition with the mentioned directions for deposit, application consideration, and registration restoration. The judgment aimed to facilitate the petitioner's compliance with tax obligations, registration reinstatement, and continuation of business activities in a timely manner.

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