GST registration cancellation challenge dismissed as appeal was time-barred under Section 107 CGST Act

The HC disposed of a writ petition challenging GST registration cancellation after the petitioner's appeal was rejected as time-barred under Section 107(1) and (4) of CGST Act. The court noted that a beneficial notification dated 31.03.2023 provided a window for registered persons whose registrations were cancelled for non-compliance with Section 29(2)(b) and (c) to apply for revocation until 30th June 2023. The court directed the petitioner to approach the proper officer with a revocation application within the specified timeframe after complying with prescribed conditions including filing due returns and paying outstanding amounts.

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Issues involved:
The judgment involves the cancellation of GST registration, the application for revocation of cancellation, and the applicability of Notification No. 03/2023 under the CGST Act.

Cancellation of GSTN Registration:
The petitioner sought quashing of the order of cancellation of GSTN registration, arguing that the show cause notice was invalid due to missing details. The petitioner also requested the revocation of the cancelled registration, stating that their business had come to a standstill due to the cancellation.

Applicability of Notification No. 03/2023:
The petitioner's counsel cited Notification No. 03/2023, which allowed registered persons to apply for revocation of cancellation of registration even if they had failed to do so within the prescribed time. The notification required the filing of returns and payment of any outstanding amounts, including tax, interest, penalty, and late fees.

Response of Respondent CGST:
The Respondent CGST acknowledged the notification and advised the petitioner to follow the prescribed conditions for seeking revocation of the cancelled registration. The CGST counsel mentioned that the appeal had been rejected as time-barred under the CGST Act.

Judgment and Disposition:
The court considered the submissions and highlighted the issuance of Notification No. 03/2023, which provided a window of opportunity for registered persons whose registrations were cancelled. The court directed the petitioner to approach the proper officer for revocation of cancellation by 30th June 2023, in compliance with the notification's conditions. The judgment emphasized that the impugned orders of cancellation would not hinder the consideration of the revocation application. Consequently, the writ petition was disposed of in favor of the petitioner.

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