GST registration cancellation for non-filing set aside as the assessee was allowed to regularise dues and restore registration.

Cancellation of GST registration for non-filing of returns was set aside where the assessee had paid the revenue dues and undertook to clear any remaining liability, including penalty. The HC directed restoration of registration and permitted limited reopening of the portal so the assessee could make payment of the amounts indicated by the GST authority. Relief was made conditional on payment within the time specified; failing compliance, the authority was at liberty to proceed further.

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Issues: Whether the cancellation of GST registration for non-filing of returns should be set aside and the registration restored, subject to payment of dues and other liabilities.

Analysis: The writ petition challenged the cancellation of registration on the ground of non-filing of return. The petitioner stated that the revenue due had been paid and undertook to clear any further outstanding dues, including penalty, for restoration of registration. The relief was granted by setting aside the impugned cancellation orders and directing the authority to restore the registration and open the portal for a limited period to enable payment of the amounts indicated by the GST authority.

Conclusion: The cancellation orders were set aside and registration was directed to be restored, with the petitioner required to pay the dues and penalty, if any, within the time indicated by the authority.

Final Conclusion: The petitioner obtained restoration of GST registration, but the relief remained conditional upon timely payment of the dues assessed by the authority, failing which the authority was permitted to take further action.

Ratio Decidendi: Cancellation of GST registration for non-filing of returns may be set aside where the assessee clears or undertakes to clear the revenue dues and the authority is directed to afford an opportunity to regularise the default.

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