GST registration cancellation quashed; restoration ordered subject to discharge of outstanding tax under Tvl. Suguna principle.

Quashing of GST registration cancellation was directed, with the court holding that restoration is conditional on discharge of outstanding tax liabilities under the Tvl. Suguna principle; result: cancellation order set aside and registration restored subject to payment and compliance as mandated. The court emphasised that the petitioner must report compliance and discharge tax arrears for restoration to take effect. The decision also notes suppression of material facts by the petitioner, reinforcing that interim protection against recovery is not available unless the prescribed conditions are fulfilled.

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Issues: Whether the impugned cancellation order in Form GST REG-13 dated 03.02.2024 is liable to be quashed and the petitioner's GST registration restored, and whether restoration should be subject to conditions relating to discharge of tax liability as per the precedent cited.

Analysis: The cancellation in Form GST REG-13 dated 03.02.2024 was examined in light of the factual course that the petitioner had delayed filing returns and had earlier obtained interim protection by not disclosing the cancellation order. The Court considered the applicability of the principle that restoration of registration may be permitted if statutory or judicially prescribed conditions are met, including discharge of tax arrears and compliance with directions in the cited precedent. The Court noted competing positions on whether delayed filing that is subsequently reflected in annual returns and belated GSTR-3B filings removes revenue implication, and observed the respondent's entitlement to consider notices under the relevant provisions dealing with recovery or demand (Sections 73, 74, 74A) and the proviso under Section 62(2).

Conclusion: The impugned cancellation order dated 03.02.2024 in Form GST REG-13 is quashed and the petitioner's GST registration is restored, subject to the petitioner complying with the conditions prescribed by the cited precedent, including discharge of outstanding tax liability.

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