Petitioner Wins GST Registration Dispute: Four-Week Window to File Returns and Clear Outstanding Dues Under Strict Compliance Mandate

HC ruled in favor of petitioner challenging GST registration cancellation. Despite non-filing of returns and failure to respond to Show Cause Notice, the court directed restoration of registration, allowing four weeks to file returns and pay dues. The order mandates compliance, with potential immediate cancellation if requirements are not met, balancing procedural fairness with regulatory compliance.

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Issues:
1. Impugning an order cancelling GST registration
2. Failure to respond to Show Cause Notice
3. Restoration of registration and compliance requirements

Analysis:
The petitioner challenged an order dated 08.02.2023, rejecting their appeal against the cancellation of their GST registration (GSTIN 07AEHPA0518G1Z3) issued on 31.10.2021. The petitioner contended that although they had been conducting business and filing returns regularly, they had not filed returns for a specific period due to nil turnover. The respondent issued a Show Cause Notice on 01.07.2021, citing non-filing of returns for six consecutive months and subsequently suspended the registration. The petitioner claimed inability to respond or appear due to illness. Despite the petitioner's failure to respond, the concerned Officer cancelled the registration on 31.10.2021, with no tax or penalty interest determined. The petitioner's appeal was dismissed solely on the ground of being beyond the limitation period.

In similar cases, the Court has allowed restoration of registration to enable taxpayers to file returns, with a provision for cancellation if non-compliance persists. Considering the petitioner's health issues and the prevailing pandemic situation, the Court directed the restoration of registration for filing returns and payment of dues within four weeks. Failure to regularize the account within this period would empower the respondents to cancel the registration immediately. The order clarified that it does not restrict the respondents from taking further lawful actions as necessary.

Therefore, the petition was disposed of with the direction to restore registration, subject to compliance within the specified timeline, emphasizing the importance of adhering to legal requirements to maintain registration status.

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