GST Registration Reinstated: Taxpayer Granted Conditional Relief with Compliance Requirements Under Section 30

HC allowed writ petition challenging GST registration cancellation, subject to specific conditions including filing past returns, paying outstanding taxes, restricting input tax credit usage, and ensuring future tax compliance. The decision followed precedent from similar cases, providing a balanced approach to resolving procedural and tax-related disputes while maintaining regulatory oversight.

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Issues:
1. Challenge to order-in-appeal under Section 107 of the CGST Act for being beyond the condonation period.
2. Cancellation of GST registration due to non-filing of GSTR returns.
3. Comparison with a previous batch of matters and conditions imposed by the court.

Analysis:
1. The Writ Petition challenges the order-in-appeal of the second respondent under Section 107 of the CGST Act, contending that the appeal was filed beyond the condonation period specified in Section 107(4) of the GST Act. The petitioner, a GST-registered proprietorship, had its registration canceled for not filing GSTR returns for over six months. An appeal was filed against this cancellation, leading to the impugned order-in-appeal dated 10.01.2024.

2. The petitioner's counsel argued that in a similar batch of cases, the court had allowed Writ Petitions subject to specific conditions. These conditions included filing returns for the period preceding registration cancellation, paying outstanding taxes with interest, not utilizing unclaimed Input Tax Credit, scrutinizing and approving any utilized credit, paying GST in cash for subsequent periods, and imposing restrictions to prevent misuse of Input Tax Credit. The court, considering this precedent, agreed to allow the current Writ Petition based on these conditions, which were accepted by both parties.

3. Consequently, the court allowed the Writ Petition, with no costs imposed, and closed the connected miscellaneous petitions. The judgment reflects a consistent approach based on previous decisions in similar matters, ensuring compliance with GST regulations and safeguarding against potential misuse of Input Tax Credit, thereby upholding the principles of tax law and procedural fairness.

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