Cancellation of GST registration for nonfiling of returns; restoration ordered upon payment after intimation of outstanding dues

Cancellation of GST registration for nonfiling of returns was challenged; the court set aside the impugned order and ordered restoration of registration upon satisfaction of outstanding statutory dues. The Superintendent must intimate the total dues, if any, up to the date of cancellation; the petitioner must deposit any such GST dues, and thereafter the authority shall revoke the cancellation and restore the GST registration. The petition was disposed of following similar precedents and after noting prior administrative remedies had been invoked and rejected.

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Issues: Whether the cancellation of the petitioner's GST registration dated 19.04.2024 for non-filing of returns for a continuous period of six months should be set aside and the registration restored subject to payment of outstanding statutory dues.

Analysis: The petitioner, a GST-registered assessee, failed to file returns for a continuous six-month period and a show cause notice was issued followed by an order of cancellation dated 19.04.2024. The petitioner was unable to file a statutory revocation application within the prescribed timeline and sought judicial relief. The Court noted that coordinate Benches have directed restoration of registration where petitioners pay outstanding statutory dues. Considering the interest of revenue in ensuring compliance and collection of statutory dues, the Court examined whether departmental authorities should be directed to re-consider revocation of cancellation and permit restoration upon full payment of dues. The Court observed no dispute from the revenue side regarding restoration upon payment of dues and relied on consistent orders in similar matters to reach a decision.

Conclusion: The impugned cancellation order dated 19.04.2024 is set aside. Respondent No.3 shall inform the petitioner of total outstanding statutory dues (if any) up to the date of cancellation; upon payment of such outstanding GST dues by the petitioner, the authority shall pass appropriate orders revoking the cancellation and restore the petitioner's GST registration. The decision is in favour of the assessee.

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