Taxpayer Wins Challenge Against GST Registration Cancellation, Court Orders Fresh Review with Late Fee Compliance

HC allows writ petition challenging GST registration cancellation. Despite administrative delays in filing returns, the court set aside the appellate authority's order and remanded the matter for reconsideration. Petitioner must pay applicable late fees. The decision emphasizes judicious exercise of registration cancellation, following precedent from previous judicial rulings.

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Issues:
The challenge in the writ petition is to the order in appeal rejecting the appeal against the order for revocation of cancelation of GST registration of the petitioner.

Details:
The petitioner, a civil work contractor, admitted delays in filing returns and appeal due to administrative reasons. The petitioner is willing to pay late fees and argues that restoration of GST registration is essential for submitting returns and paying taxes. Cancellation of GST registration should be exercised judiciously, as observed in a Delhi High Court case. A similar decision by the Division Bench set aside an order and remanded the matter for fresh consideration.

The Department argues that the delays by the petitioner justify the order passed by the authority. However, considering the petitioner's willingness to pay late fees and the precedent set by the Delhi High Court, the High Court sets aside the orders of the appellate authority and cancellation of GST registration. The matter is remitted back to the respondent to consider the restoration of registration, with the petitioner required to pay late fees as per the rules.

The High Court allows the writ petition, with no costs imposed. Pending miscellaneous applications are to be closed.

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