GST registration cancellation may be reversed where pending returns can still be filed and revocation sought on compliance

GST registration cancellation may be interfered with where the taxpayer was not given a fair opportunity to regularise compliance by filing pending returns. Applying a prior coordinate bench view, the High Court set aside the appellate order affirming cancellation and directed the petitioner to file all pending GST returns, especially for the period during which registration remained cancelled, with costs payable to the department. The authority was left to consider revocation of registration once the pending returns were filed, thereby enabling compliance-based restoration rather than final cancellation.

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Issues: Whether the appellate order affirming cancellation of GST registration was liable to be set aside, and whether the petitioner should be afforded an opportunity to submit pending GST returns and seek revocation of registration on payment of costs.

Analysis: The petitioner's challenge arose from cancellation of GST registration and dismissal of the statutory appeal. The Court adopted the view taken in an earlier coordinate bench decision on similar facts, where denial of the opportunity to file returns within the prescribed period had been treated as warranting interference. In that backdrop, and to afford a further opportunity to regularise compliance, the impugned appellate order was interfered with and the petitioner was directed to file all pending GST returns, particularly for the period during which registration stood cancelled. The Court also directed payment of costs to the department and left it to the authority to consider revocation if the pending returns were filed.

Conclusion: The impugned order was set aside, the petitioner was given an opportunity to file pending GST returns and seek revocation of registration, and the petition was allowed.

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