Payment in Installments Allowed for Interest Liability to Restore Registration

The court acknowledged the petitioner's need to settle interest liability for registration restoration but recognized their challenges in collecting contractual dues due to registration cancellation. The court directed the petitioner to request payment of interest liability in installments due to financial constraints exacerbated by Covid-19, with registration restoration contingent upon full dues clearance as directed by the respondent. The writ petition was disposed of with emphasis on adhering to payment terms for prompt registration reinstatement.

---

---

Issues:
1. Striking out of petitioner's firm registration by respondent GST causing payment release issues.
2. Dispute over outstanding interest liability for delayed filing of returns GSTR-3B.
3. Request for restoration of registration and payment of interest liability in installments.
4. Disagreement on granting liberty to pay arrears in installments due to financial crisis.

Analysis:
The petitioner's firm faced registration cancellation by the respondent GST, hindering payment release against contractual works. The petitioner contended that despite clearing outstanding dues shown on the portal, registration restoration was pending, leading to difficulties in receiving contractual payments from organizations like Oil India Limited and Digboi Refinery. The respondent GST highlighted an interest liability of Rs. (73,707X2) for delayed GSTR-3B filings from October 2018 to April 2020, necessitating payment for registration reinstatement.

Considering the submissions, the court acknowledged the requirement for the petitioner to settle the interest liability to restore registration. However, the petitioner's claim of facing challenges in collecting contractual dues due to registration cancellation was deemed credible. In light of the circumstances, the court directed the petitioner to approach the relevant authority, specifically respondent No. 3, with a request to pay the interest liability in installments due to financial constraints exacerbated by the Covid-19 pandemic. The court mandated a swift resolution within seven days upon submission of the application, with registration restoration contingent upon full dues clearance as directed by respondent No. 3.

Ultimately, the writ petition was disposed of at the motion stage with the consent of the learned counsel, emphasizing the importance of adhering to the specified payment terms for prompt registration reinstatement.

---