HC orders immediate GST registration restoration pending payment of Rs. 21,500 dues under specified conditions
The HC directed restoration of the Petitioner's GST registration on condition that the Petitioner pays outstanding dues of Rs. 21,500/- within two weeks from the order date. Registration was to be restored immediately to enable payment, with due notice given to the Petitioner. The Petitioner committed to paying the dues within 48 hours of restoration. The petition was disposed accordingly.
ISSUES:
Whether the cancellation of a taxpayer's registration under the Central Goods and Services Tax Act, 2017 can be challenged and set aside upon payment of outstanding GST dues.Whether the authorities are required to compute GST dues for specific financial years before restoration of registration.Whether restoration of GST registration can be directed conditionally upon payment of determined dues within a stipulated time frame.
RULINGS / HOLDINGS:
The Court held that the cancellation of registration under the CGST Act can be set aside if the petitioner is ready and willing to pay all GST dues, subject to computation of such dues by the authorities.The Court directed the Respondents to compute the dues payable by the Petitioner for the years 2022-2023 and 2023-2024 and communicate the same within four weeks, emphasizing that the "exercise must be carried out in relation to the years 2022-2023 and 2023-2024."The Court ordered restoration of the Petitioner's registration on the condition that the Petitioner pays the dues of Rs. 21,500/- within two weeks from the date of the order, stating that "if the dues are paid within the timelines now indicated, the impugned order would be deemed to have been set aside."The registration was directed to be restored immediately to facilitate payment, with a clear stipulation that failure to pay within 48 hours of restoration would result in dismissal of the petition without further reference.
RATIONALE:
The Court applied the statutory framework under the Central Goods and Services Tax Act, 2017, emphasizing the principle that registration cancellation can be reconsidered upon payment of dues.The Court relied on precedent orders disposing of similar writ petitions where a course of action involving computation of dues and conditional restoration of registration was adopted, reflecting a consistent judicial approach.The decision reflects a procedural safeguard ensuring that dues are properly quantified before restoration, balancing the taxpayer's right to registration with the revenue's interest in recovery of tax dues.No dissent or doctrinal shift was noted; the Court followed established principles and prior orders to arrive at a reasoned and conditional restoration of registration.
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