HC restores GST registration canceled for non-filing, citing genuine hardship; pending returns and dues must be cleared under Section 29

The HC revoked the cancellation of the petitioner's GST registration, which had been canceled due to non-filing of returns for six months. The petitioner's failure was attributed to ill-health and financial difficulties, deemed genuine by the court. The revocation is conditional upon the petitioner filing all pending GST returns and paying the outstanding tax liabilities along with applicable interest and penalties. The petition was disposed of accordingly.

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The Madras High Court, through Justice Krishnan Ramasamy, allowed the writ petition challenging the cancellation of the petitioner's GST registration by the respondent dated 28.02.2024. The Court found the petitioner's explanation-non-filing of GST returns for six months due to ill-health and financial constraints-as a "genuine" reason for non-compliance. The Court "is inclined to revoke the impugned order" subject to conditions including: (i) The respondent shall instruct the GST Network to enable the petitioner to file returns and pay tax/penalty within four weeks. (ii) The petitioner must file all pending returns with tax dues, interest, and late fees within four weeks of restoration. (iii) Payments shall not be made or adjusted from any Input Tax Credit (ITC) without prior scrutiny and approval by competent authorities. (iv-vii) Only approved ITC may be utilized for future liabilities, and failure to comply with these conditions will cause the revocation benefit to cease automatically. The writ petition was disposed of accordingly, with no costs.

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