GST registration cancellation revoked, with restoration made conditional on filing returns, clearing dues, and complying with revenue safeguards.

Cancellation of GST registration for non-filing of returns was revoked where the default was explained by genuine ill-health and financial constraints. The HC directed restoration of registration, but only on condition that the taxpayer files pending returns and pays tax dues, interest, and belated filing fee within the stipulated time. To protect revenue, the order also restricted use of unutilized Input Tax Credit until scrutiny and approval by the competent authority.

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Issues: Whether the cancellation of GST registration should be revoked and the registration restored, subject to conditions for filing returns and clearing tax dues.

Analysis: The cancellation was based on non-filing of GST returns for six months. The reasons given for the default, namely ill-health and financial constraints, were accepted as genuine. The relief was moulded by directing restoration of registration and requiring filing of pending returns, payment of tax dues, interest, and belated filing fee within the stipulated time. The order also protected the revenue by restricting use of unutilized Input Tax Credit until scrutiny and approval by the competent authority.

Conclusion: The cancellation of GST registration was revoked and the registration directed to be restored, subject to compliance with the specified conditions.

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