Court Orders GST Registration Restoration if Returns Filed and Dues Paid Within Four Weeks.

The HC set aside the cancellation of the petitioner's GST registration due to non-filing of returns, emphasizing the need for compliance to ensure revenue recovery. The court directed the restoration of registration upon the petitioner filing outstanding returns and paying due taxes, interest, fines, and penalties within four weeks. Failure to comply would result in dismissal of the writ petition. The respondents were instructed to facilitate the petitioner's compliance by opening the portal for filing returns and payments within a week. The writ application was disposed of without costs, requiring all parties to act per the official court order.

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Issues:
Challenge to cancellation of registration under GST Act due to non-filing of returns.

Analysis:
The petitioner challenged the order of cancellation of registration under the GST Act, claiming to be interested in complying with the Act by filing returns. The respondent authorities contended that the cancellation was due to the petitioner's non-compliance with statutory provisions. The court noted that the cancellation was based on non-filing of returns and not on tax evasion. The appeal against the cancellation was dismissed on the ground of limitation, but the court considered the impact of suspension/revocation on revenue recovery and permitted the petitioner to continue business upon compliance with conditions.

The court found that the petitioner's registration was cancelled for non-filing of returns and not for tax evasion. The court emphasized the importance of allowing the petitioner to carry on business to ensure revenue recovery. The respondents stated that final tax liability cannot be determined until the petitioner files returns. The court referred to a previous judgment and decided to set aside the cancellation order subject to the condition that the petitioner files returns for the default period and pays the necessary tax, interest, fine, and penalty.

The court directed the restoration of the petitioner's registration if compliance is met within four weeks. Failure to comply would result in dismissal of the writ petition. The respondents were instructed to open the portal for the petitioner to file returns and make payments within a week. The court disposed of the writ application without costs, and all parties were required to act based on the official order downloaded from the court's website.

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