High Court Upholds GST Registration Cancellation, Offers Conditional Restoration Path for Taxpayer Facing Procedural and Health Challenges

GST registration cancellation appeal rejected due to time-barred filing. HC recognized petitioner's health challenges and directed registration restoration conditional on filing past returns, paying tax dues, and meeting specified compliance requirements. Court balanced procedural strictness with equitable relief, allowing petitioner opportunity to rectify GST registration status through structured remedial actions.

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Issues involved:
The issues involved in this case are the rejection of the appeal against the cancellation of GST registration due to non-filing of returns for a continuous period, the time bar for filing the appeal, and the lack of remedy for the petitioner except to approach the High Court.

Details of the Judgment:

1. The petitioner challenged an appellate order rejecting the appeal against the cancellation of their GST registration, citing health issues as the reason for non-filing of returns. The cancellation order was issued after a show cause notice, and the appeal was rejected as time-barred.

2. The counsel for the petitioner argued that the only recourse left for the petitioner is to approach the High Court, referring to a previous order of the Court in a related matter.

3. The senior standing counsel for the respondents pointed out that the appeal was filed after the deadline for condonation of delay and questioned whether returns were filed up to the date of cancellation.

4. The Court noted that the appellate authority was justified in rejecting the appeal based on the provisions of Section 107 of the CGST Act, 2017. However, considering the circumstances, the petitioner should not be left without a remedy. Referring to a previous case, the Court directed restoration of registration subject to certain conditions.

5. The Court disposed of the writ petition with directions for the petitioner to file returns for the period before and after the cancellation, pay tax dues, interest, and fees within a specified timeline. The utilization of Input Tax Credit was also regulated, and the registration would stand revived upon compliance.

6. The restoration of GST registration was made conditional upon fulfilling the specified conditions within the timelines set by the Court.

7. The Court disposed of the case with no costs, and the respondents were instructed to make necessary changes in the GST Web portal to facilitate compliance with the Court's directions within a specified timeframe.

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