GST registration cancellation upheld but beneficial notification allows revocation application with compliance requirements

The Jharkhand HC disposed of a writ petition challenging GST registration cancellation after the Appellate Authority upheld the cancellation for non-compliance with Section 29(2)(b)(c) of CGST Act. The petitioner's appeal was time-barred under Section 107. However, the court noted CBIC Notification No. 3/2023 dated 31.03.2023 provided a beneficial window allowing cancelled registrants to apply for revocation by 30th June 2023, subject to filing due returns and paying outstanding amounts. The court directed the petitioner to approach the proper officer for revocation under this notification.

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Issues involved:
The issues involved in the judgment are the quashing of orders related to the cancellation of GST registration and seeking direction for restoration of registration based on Notification No. 03/2023-Central Tax.

Quashing of Orders:
The petitioner sought to quash the order rejecting the appeal against the original order dated 12.05.2022 and the order cancelling GST registration dated 12.05.2022. The petitioner aimed for restoration of GST registration, challenging the cancellation affirmed in the Order-in-Original and Order-in-Appeal.

Notification No. 03/2023-Central Tax:
The petitioner relied on Notification No. 03/2023, which allowed registered persons whose registration was cancelled under specific clauses of Section 29 of the CGST Act before 31st December 2022 to apply for revocation of cancellation until 30th June 2023. The notification required filing of due returns, payment of taxes, interest, penalty, and late fees. It also covered cases where appeals against cancellation were rejected.

Court's Decision:
The court considered the petitioner's case where the appeal against cancellation was rejected as time-barred under Section 107(1) and (4) of the CGST Act. Despite this, the court found the notification beneficial and directed the petitioner to apply for revocation of cancellation by 30th June 2023, following the conditions specified in the notification. The court clarified that the impugned orders would not hinder the consideration of the revocation application. The writ petition was disposed of accordingly.

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