GST Registration Restored: Medical Evidence and Substantial Compliance Overcome Procedural Hurdles in License Reinstatement

HC addressed GST registration cancellation where petitioner's business license was revoked due to non-commencement within six months. Despite initial appeal rejection for procedural delay, court considered medical evidence of managing director's illness and petitioner's subsequent GST payment compliance. HC directed respondents to restore GST license within ten days, acknowledging procedural challenges and absence of appellate tribunal in U.P., emphasizing substantive justice over strict procedural adherence.

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Issues involved:
The issues involved in the judgment are the cancellation of GST registration due to non-commencement of business within six months, rejection of appeal on the ground of delay, absence of GST Appellate Tribunal in the State of U.P., and restoration of GST license.

Cancellation of GST registration:
The petitioner, running a Consultancy Services business, had his GST registration cancelled due to non-commencement of business within six months. The cancellation was based on the petitioner's failure to respond to a show cause notice issued by the Assistant Commissioner, Lucknow. The petitioner, through medical documents, proved that the Managing Director was seriously ill during the period of non-response. The petitioner later deposited all pending GST amounts along with late fees and interest. The High Court directed the respondents to restore the GST license within ten days and instructed the petitioner to pay any outstanding amounts within seven days of communication.

Rejection of appeal on the ground of delay:
The petitioner's appeal against the cancellation of GST registration was rejected due to a delay of 95 days in filing the appeal, exceeding the limitation period under Section 107 of the U.P. GST Act. Despite the delay, the petitioner provided medical evidence of the Managing Director's illness as a reason for the delay. The High Court considered the seriousness of the consequences of registration cancellation and the petitioner's compliance with GST payments, leading to the restoration of the GST license.

Absence of GST Appellate Tribunal in U.P.:
The petitioner, facing the rejection of the appeal and lacking an alternative remedy due to the absence of a GST Appellate Tribunal in the State of U.P., resorted to filing a writ petition. The High Court acknowledged this lack of an appellate tribunal and proceeded to adjudicate the matter, ultimately directing the restoration of the GST license.

Restoration of GST license:
Considering the petitioner's serious illness during the period of non-response to the show cause notice, the High Court ordered the restoration of the GST license. The petitioner's compliance with GST payments, submission of medical documents, and the absence of a GST Appellate Tribunal in U.P. were crucial factors in the High Court's decision to restore the GST license.

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