2025 (8) TMI 557 - HC - GST

Delay in Challenging GST Registration Cancellation Under Section 30 Condoned; Timely Application Allowed Within Three Weeks

The HC held that the delay in challenging the cancellation of GST registration under Section 30 of the Act is condoned due to the initial complexity of ... Maintainability of petition - availability of alternative remedy - correctness of the cancellation of the GST registration - HELD THAT:- In view of the enforcement of the Act being at the initial stage and various typical aspects of the Act being a little beyond the understanding of a common man, whose prime focus is on running his day to day business, the limitation should not take precedence for reconsideration of the order of cancellation. The cancellation directly affects the livelihood of the citizen and every cancellation would also have an adverse effect on the revenues of the State, as it is well known that no person can carry-on trade or business as guaranteed under Article 19 of the Constitution of India, without complying with the restriction of registration. Keeping a larger objective of the involvement of livelihood and also loss of revenue to the Department, it is opined that delay in invoking the provisions of Section 30 of the Act is required to be condoned and is, accordingly, condoned. If an application is made by the petitioner under the provisions of Section 30 of the Act within three weeks from today and if such an application is made, the same shall be taken-up for consideration and shall be disposed of within three weeks thereafter. Along with the application, the petitioner shall also file the returns upto the date of cancellation order. The order in appeal dated 23.06.2025 is set aside - petition disposed off. The Uttarakhand High Court, per Chief Justice G. Narendar, addressed the correctness of GST registration cancellation. The Court noted that under Section 30 of the Central Goods and Services Tax Act, 2017, a registered dealer aggrieved by cancellation may apply for revocation within 90 days. Although the petitioner had not filed such an application, the Court observed that given the Act's novelty and its impact on livelihood and state revenue, the limitation period should not bar reconsideration. Accordingly, the Court 'condoned the delay in invoking the provisions of Section 30' and directed the petitioner to file the revocation application within three weeks, along with returns up to the cancellation date. The application must be decided within three weeks thereafter. The earlier appellate order dated 23.06.2025 was set aside, and the writ petition was disposed of.