GST registration cancellation for non-filing may be quashed subject to compliance with conditions protecting Revenue interests.

Cancellation of GST registration for continuous non-filing of returns may be interfered with where conditional relief is necessary to protect the Revenue's interest. The Madras HC followed its earlier view that such cancellation orders can be set aside if the taxpayer complies with the prescribed conditions, and directed the impugned cancellation to stand quashed subject to compliance with those requirements. The writ petition was accordingly allowed on a conditional basis.

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Issues: Whether the cancellation of GST registration for alleged continuous non-filing of returns could be interfered with and quashed, subject to compliance with directions balancing the interests of the Revenue.

Analysis: The cancellation was made on the ground that returns had not been filed for a continuous period of six months. The relief was granted by following the earlier view that registration cancellations in such cases can be set aside while safeguarding the Revenue's interest, and by directing compliance with the conditions stipulated in the earlier decision relied upon by the Court.

Conclusion: The impugned cancellation order was directed to stand quashed subject to compliance with the stipulated conditions, and the writ petition was allowed.

Final Conclusion: The petitioner obtained conditional relief against cancellation of GST registration, with the impugned order liable to be set aside upon compliance with the prescribed requirements.

Ratio Decidendi: Cancellation of GST registration for non-filing of returns may be interfered with where the assessee is directed to comply with conditions that protect the Revenue's interest.

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