GST registration cancellation upheld after petitioner admits tax demand and deposits amount under Section 73

The HC dismissed a writ petition challenging cancellation of GST registration under Section 73 of the Goods and Services Act, 2017. The petitioner had admitted tax demand and deposited the amount, making their plea regarding tax unacceptable. Regarding interest and penalty demands, the court held these issues could be raised through statutory appeal under Section 107 of the Act. The petition failed to show reasons for bypassing the available appellate remedy, resulting in dismissal with liberty to pursue statutory appeal.

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The Allahabad High Court, in a judgment dated 24.02.2025, dismissed a writ petition challenging an order passed under Section 73 of the Goods and Services Act, 2017, which raised a tax demand of Rs. 76,274.45. The petitioner's registration was cancelled effective 31.07.2022, with no demand shown at that time. Subsequently, a notice under Section 73 was issued for FY 2020-21 demanding Rs. 1,23,247.15, to which the petitioner responded by depositing the tax and interest.The Court held that since the petitioner admitted and paid the outstanding tax, it cannot dispute the tax demand. Regarding the challenge to interest and penalty, the Court emphasized that such issues are "open to challenge under Section 107 of the Act," and the petitioner's failure to exhaust the statutory appellate remedy warranted dismissal of the writ petition. The Court stated, "no reason has been indicated in the petition seeking to bypass the remedy," and thus allowed the petitioner to file an appeal as per law.

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