Petitioner Wins GSTIN Restoration After Health Challenges, Ordered to File Pending Returns Within Four Weeks

HC allowed petition challenging GSTIN registration cancellation. Despite non-filing of returns for six months and health issues, the court directed restoration of registration within two weeks. Petitioner must file pending returns within four weeks, with potential penalty waiver consideration. No outstanding tax dues were found, and mitigating pandemic-related circumstances were acknowledged in the ruling.

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Issues:
1. Impugning an Order-in-Appeal dated 31.10.2022 cancelling GSTIN registration.
2. Failure to file returns for six months leading to cancellation.
3. Petitioner's ill-health as a reason for non-compliance.
4. Dismissal of appeal due to insufficient cause shown for revocation.
5. Requirement of filing an affidavit for revocation.
6. Sole proprietorship of the concern and health issues.
7. Lack of outstanding tax dues from the petitioner.
8. Mitigating circumstances justifying revocation of cancellation.

Analysis:
The petitioner challenged an Order-in-Appeal dated 31.10.2022 that cancelled the GSTIN registration due to failure to file returns for six months. The petitioner, a sole proprietor suffering from ill-health, claimed inability to file returns timely but had discharged tax liability. Despite not responding to the Show Cause Notice or attending a hearing, the registration was cancelled on 18.01.2021, with no outstanding dues found. The appeal against this cancellation was dismissed for insufficient cause shown for revocation and failure to submit a required affidavit.

The Appellate Authority required the petitioner to file an affidavit confirming timely return filing and tax payment, which was not done. The Court acknowledged the petitioner's health issues during the pandemic and the business standstill. Notably, no outstanding dues were found from the petitioner. Considering these mitigating circumstances, the Court held that the petitioner had shown sufficient grounds for revocation of the cancellation.

The Court allowed the petition, setting aside the cancellation order and the appeal rejection. The respondents were directed to restore the GSTIN registration within two weeks. The petitioner was instructed to file all returns promptly to regularize GST filings within four weeks. Failure to comply would empower the respondent to take legal action, including registration cancellation. The petitioner could request waiver of penalties for late filing, partly due to the registration cancellation, with an expectation of sympathetic consideration by the respondents due to mitigating circumstances.

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