Conditional restoration of GST registration for non-filing of returns, with compliance tied to filing and payment of dues.

GST registration cancelled for non-filing of returns was interfered with where there was no allegation of dubious tax evasion and continued cancellation would obstruct business and revenue recovery. Conditional relief was granted: the cancellation and appellate orders were set aside subject to the taxpayer filing returns for the default period and paying the outstanding tax, interest, fine and penalty. The portal was also directed to be activated to enable compliance, and registration was to be restored only upon fulfilment of those conditions.

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Issues: Whether the cancellation of GST registration for non-filing of returns was liable to be set aside and the registration restored subject to compliance with tax dues and return filing.

Analysis: The cancellation was based on non-filing of returns, and there was no allegation that the petitioner was adopting a dubious method to evade tax. The order proceeded on the footing that keeping registration cancelled would prevent the petitioner from carrying on business and would also be counterproductive to revenue recovery, since invoices could not be raised. In view of these circumstances, the cancellation order and the consequential appellate order were liable to be interfered with, but only on condition that the petitioner files the returns for the entire default period and pays the requisite tax, interest, fine and penalty. The Court also directed activation of the portal to enable compliance.

Conclusion: The cancellation order and the appellate order were set aside subject to compliance with the stipulated conditions, and the registration was directed to be restored upon such compliance.

Final Conclusion: The petitioner obtained conditional relief against cancellation of registration, with restoration made dependent on filing of returns and payment of outstanding dues.

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