GST registration cancellation quashed with conditional restoration after payment of outstanding dues and compliance liabilities.

GST registration cancellation was set aside where the taxpayer attributed compliance delay to family medical hardship and expressed readiness to clear all liabilities. The Court accepted the equitable basis for relief and linked restoration of the GSTIN to payment of the outstanding dues under the GST law. The cancellation and appellate orders were quashed, and the registration was directed to be restored once the payable amounts were discharged.

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Issues: Whether the cancellation of the petitioner-firm's GSTIN ought to be quashed and the registration restored on payment of outstanding dues.

Analysis: The petitioner attributed the delay in compliance to medical hardship in the family and expressed willingness to discharge all liabilities under the GST regime. The respondents also indicated readiness to restore the GSTIN upon payment of complete dues. In these circumstances, the Court found it appropriate to grant relief by linking restoration to payment of the amounts payable.

Conclusion: The impugned cancellation and appellate orders were set aside and the respondents were directed to restore the GSTIN after the necessary dues under the GST law were paid.

Final Conclusion: The petitioner obtained quashing of the cancellation orders and conditional restoration of GST registration on clearing the outstanding dues.

Ratio Decidendi: Where cancellation of GST registration is caused by compliance default but the taxpayer is willing to clear the dues and the surrounding circumstances justify equitable relief, restoration may be ordered subject to payment of outstanding liabilities.

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