Judicial Intervention Restores GST Registration, Offers Compliance Path for Taxpayer Facing Financial Hardship Under Section 30

HC allowed the writ petition challenging GST registration cancellation. Despite delayed approach, the Court recognized the petitioner's financial crisis and directed restoration of registration. The petitioner was mandated to file outstanding returns and clear pending dues within specified timelines, effectively reinstating their tax compliance status.

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Issues:
- Writ of Certiorarified Mandamus sought to quash cancellation of GST registration.
- Default in GST payment due to financial crisis.
- Delay in approaching the Court for relief.
- Restoration of GST registration and filing of outstanding returns and dues.

Analysis:

1. The petitioner, a film production company registered for GST, faced a financial crisis leading to default in GST payment for October 2022. Despite clearing dues later, the registration was canceled, prompting the petitioner to seek a Writ of Certiorarified Mandamus to quash the cancellation and direct revocation.

2. The petitioner argued that the financial crisis caused the default, and they committed to paying all dues promptly upon revocation of the cancellation. The respondent, however, highlighted the delay in addressing the issue, as the cancellation occurred in May 2023, but the petitioner approached the Court after over a year.

3. The Court acknowledged the financial difficulties faced by the petitioner, noting the payment of a substantial amount towards GST upon receiving partial payment. The Court emphasized the importance of maintaining the petitioner's registration to facilitate business operations and tax compliance.

4. Considering the circumstances and submissions, the Court set aside the cancellation order, thereby restoring the petitioner's GST registration. The third respondent was directed to reinstate the registration promptly to allow the petitioner to fulfill all statutory obligations within the specified timelines.

5. The judgment concluded by disposing of the Writ Petition without costs and closing the connected Miscellaneous Petition, ensuring the restoration of the petitioner's GST registration and the timely filing of outstanding returns and dues as per the Court's directives.

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