University wins GST registration restoration after agreeing to pay penalties for delayed returns under Section 30

The Telangana HC allowed a writ petition by a university seeking revocation of GST registration cancellation. The petitioner's counsel undertook to file a revocation application within two weeks, despite being beyond the prescribed time limit under Section 30 of the Act. The petitioner agreed to pay any late fees/penalties for delayed return submissions. The court directed respondents to immediately revoke the cancellation upon receiving the application, noting that since the default was only non-furnishing of returns, restoration of GST registration would enable the university to process college affiliation proceedings and generate GST revenue for authorities.

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Issues involved: Petition seeking revocation of GST registration cancellation for non-filing of returns within stipulated period, violation of constitutional articles and principles of natural justice.

The petitioner filed a writ petition under Article 226 of the Constitution of India seeking the revocation of the cancellation of GST registration. The petitioner had paid taxes and filed returns till a certain period, but the registration was cancelled without issuing a DRC-03 for a subsequent period. The petitioner argued that the cancellation was violative of constitutional articles and principles of natural justice. The petitioner requested the court to set aside the cancellation certificate and pass necessary orders.

The petitioner's counsel explained that the cancellation occurred due to a delay in submitting returns, which was rectified by paying all dues after becoming aware of the cancellation. The petitioner needed the registration to process affiliation proceedings for various colleges. The court noted that no specific application was made under Section 30 of the Central Goods and Services Tax Act, 2017 for revocation of the cancellation.

The petitioner agreed to submit an application for revocation within two weeks, despite being beyond the prescribed time limit. The petitioner was willing to pay any late fee or penalty for the delay. The court directed the authorities to immediately revoke the cancellation upon receiving the application.

Referring to a Delhi High Court decision, the court emphasized the need for a pragmatic approach in cases of GST registration cancellation. A similar decision by the Madras High Court was also cited, outlining conditions for reviving cancelled registrations. The court decided that, if the default was only in non-filing of returns, the petitioner's GST registration should be restored upon rectifying the default.

In conclusion, the writ petition was allowed, and no costs were imposed. The court relied on previous judicial pronouncements and directed the restoration of the petitioner's GST registration to facilitate affiliation proceedings for colleges under the petitioner-university, generating revenue for the authorities.

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