GST registration cancellation quashed conditionally, with restoration linked to filing pending returns and payment of statutory dues.

GST registration cancellation for continuous non-filing of returns was quashed, as the Court followed the approach that default could be cured by granting one further opportunity where restoration would enable filing of returns and recovery of dues. The cancellation notice, cancellation order and appellate affirmation were set aside, but the benefit was made conditional on filing all pending GST returns and paying the requisite tax, interest, penalty, fine and late fees within the stipulated time. The portal was directed to be opened to facilitate compliance, and failure to comply would revive the cancellation.

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Issues: Whether the orders cancelling GST registration and the appellate order affirming cancellation were liable to be set aside, and whether restoration of registration could be made conditional upon filing returns and payment of tax, interest, fine, penalty and late fees.

Analysis: The cancellation had been made on the ground of continuous non-filing of returns. The order applied the earlier Division Bench and coordinate bench approach that such defaults may be cured by granting one further opportunity, since restoration of registration can facilitate filing of returns and recovery of dues. The Court also directed opening of the portal to enable compliance.

Conclusion: The cancellation notice, cancellation order and appellate order were set aside and quashed subject to the petitioner filing the GST returns for the entire period of default and paying the requisite dues within the stipulated time, failing which the benefit of the order would not enure and the cancellation would revive.

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