Petitioner Wins GST Registration Restoration, Must File Pending Returns and Settle Outstanding Tax Compliance Obligations

HC allowed the petition challenging GST registration cancellation. The court restored the registration, requiring the petitioner to file pending returns and comply with CGST Rules. The order emphasized that tax authorities retain rights to recover any outstanding dues, while providing an opportunity for the petitioner to rectify procedural non-compliance related to return submissions.

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Issues:
The judgment involves the cancellation of GST registration u/s 29(2)(b) of the Central Goods and Service Tax Act, 2017.

Cancellation of Registration:
The petitioner challenged the order for cancellation of registration dated 07.03.2023, which canceled the GST registration with effect from 15.01.2023. The petitioner, running a proprietorship firm under the trade name of S.K Transports, was issued multiple notices before a Show Cause Notice on 15.01.2023.

Reasoning for Cancellation:
The impugned order stated that the registration was liable to be canceled due to non-filing of returns for more than six months. The petitioner had not filed returns nor replied to the Show Cause Notice. However, the order itself was deemed inadequate as it did not specify any dues against the petitioner, showing nil demand.

Petitioner's Submission and Relief:
The petitioner contended that returns for specific periods were filed late due to a family member's illness. The petitioner expressed willingness to file returns and pay any charges for delayed filing. Considering these circumstances, the court allowed the petition, setting aside the cancellation order and restoring the GST registration subject to compliance with filing requisite returns and Rule 23 of the CGST Rules, 2017.

Clarification and Conclusion:
The judgment clarified that the respondents could still take steps for the recovery of any tax, penalty, or interest due from the petitioner as per the law. The petition was disposed of with the restoration of GST registration upon fulfilling the specified conditions.

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