Petition allowed; GST registration cancellation set aside-file all pending GST returns for period of cancellation to seek revocation

HC allowed the petition, set aside the orders cancelling the firm's registration and dismissing the appeal, and directed the petitioner to submit all pending GST returns, particularly for the period of cancellation. If the pending returns are filed before the authority, the authority shall consider revocation of registration. The court observed that an opportunity of hearing was provided but, in the interest of bringing the petitioner back into the formal tax regime, revocation consideration is warranted upon compliance.

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Petitioner, a company registered under the Companies Act, 2013, had its GST registration cancelled vide order dated 05/06/2024 for non-furnishing of returns for December 2023-March 2024 after a show cause notice dated 24/05/2024; the departmental appeal was dismissed on 14/05/2025 on the ground of delay. Reliance was placed on Sections 25, 29 and 30 of the Central Goods and Services Tax Act, 2017 and Rules 21(a) & (h), 22 and 23 of the CGST Rules, 2017. The Court found that an opportunity of hearing had been afforded. The Court "set aside" the impugned orders dated 05/06/2024 and 14/05/2025 and directed the petitioner to submit all pending GST returns, particularly for the period when registration was cancelled, whereupon the authority shall consider the case for revocation of registration. As petitioner committed default, a cost of Rs.50,000 is imposed to be paid to the department along with the pending returns. Order expressly passed on the "peculiar facts and circumstances of the case."

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