2025 (3) TMI 1025 - HC - GST

GST Registration Restored for Taxpayer Facing Financial Hardship, Mandated to Clear Outstanding Dues Within 48 Hours

Stanley Aphonsus D’silva Versus The State of Maharashtra through the Government Pleader & Ors.

Bombay HC allowed GST registration restoration for Petitioner who failed to file returns due to financial constraints. Court directed Respondents to ... Cancellation of registration of the Petitioner under the CGST Act, 2017/MGST Act, 2017 - failure to file returns for more than six months - Petitioner is willing to pay all dues together with interest - HELD THAT:- Considering the peculiar facts of this case, and the fair concession made by the learned Addl. GP, we direct the Respondents to compute, within a period of two weeks, the dues if any, payable by the Petitioner. The amount so determined must be communicated to the Petitioner within a period of one week thereafter, and upon the Petitioner paying the said amount, the Petitioner’s registration be restored. It is needless to clarify that the registration should be restored to facilitate the payment of the dues calculated by the Respondents, and within 48 hours of restoration of the registration, the Petitioner must pay the demanded dues. If this is not done, then the registration can be cancelled without the necessity of any notice to the Petitioner. In addition to what is stated herein above, the Petitioner shall pay Rs. 40, 000/- as costs to “The High Court Employees Medical Welfare Fund at Mumbai” within a period of one week from today. Petition disposed off. Summary: The petition challenges an order dated 21 September 2022 that cancelled the Petitioner's GST registration for failure to file returns for more than six months. The Petitioner attributed non-filing to a 'severe financial crunch' and expressed willingness to pay all dues and interest. The Respondents conceded they would not object to restoration if dues with interest were paid. The Court directed the Respondents to compute any dues within two weeks and communicate the amount within one week thereafter. Upon payment of the dues, the Petitioner's GST registration shall be restored; the restoration is 'to facilitate the payment of the dues,' and the Petitioner must remit the demanded dues within 48 hours of restoration, failing which the registration may be cancelled without further notice. The Petitioner must also pay Rs. 40,000 as costs to 'The High Court Employees Medical Welfare Fund at Mumbai' within one week and file proof of payment. If payments are made as ordered, the impugned order is set aside and the 'Rule is made absolute'; failure to pay costs will result in dismissal of the writ petition.