GST Registration Cancellation Upheld: Petitioner Granted 30-Day Window to File Revocation Application Under Section 30

HC dismissed the petition challenging GST registration cancellation but granted the petitioner 30 days to file a revocation application under section 30 of the GST Act. The court allowed the writ petition with conditions of paying outstanding dues and penalties, providing a flexible approach to procedural limitations while maintaining statutory compliance.

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Issues involved:
The issues involved in the judgment are the dismissal of a petition under section 107 of the Central Goods and Services Tax Act, 2017 and seeking revocation of the cancellation of registration under section 30 of the GST Act.

Dismissal of Petition under Section 107:
The petitioner, a proprietor of a firm registered under the GST Act, filed a writ application seeking to quash the order rejecting the appeal due to being filed after the limitation period. The appeal was dismissed as it was barred by limitation.

Cancellation of GST Registration:
The petitioner's GST registration was canceled for failure to furnish returns for six months, leading to the filing of an appeal under section 107 of the GST Act, which was rejected. The petitioner cited a notification extending the time for revocation application till June 30, 2023, due to pending appeal.

Legal Provisions and Considerations:
Section 39 of the GST Act mandates monthly return filing, with section 45 allowing restoration of registration by filing a final return within three months of cancellation. Section 30 permits a registered person to apply for revocation of cancellation. The court noted the civil consequences of cancellation and the provisions aimed at providing opportunities for defaulters to continue business.

Court Decision:
The court acknowledged the need for a liberal approach despite the lapse of the period prescribed under section 30. It granted permission to the petitioner to file an application under section 30 of the GST Act within 30 days, subject to payment of dues and penalties. The writ petition was allowed to that extent, with the limitation period starting from the date of the court's order.

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