GST registration cancellation may be set aside and restored on payment of outstanding statutory dues.

GST registration cancelled for non-filing of returns may be restored where outstanding statutory dues are paid, as collection of tax arrears remains central to the revenue interest. The High Court noted that registered persons must discharge GST liabilities and that, in similar matters, restoration has been directed on payment of dues. On that basis, the cancellation and refusal to revoke were set aside, and the authority was directed to intimate any outstanding dues so the registration could be restored after compliance.

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Issues: Whether the orders cancelling the GST registration and rejecting revocation were liable to be set aside and whether restoration of registration could be directed upon payment of outstanding statutory dues.

Analysis: The petitioner was registered under the GST regime and had defaulted in filing returns for six months, leading to cancellation of registration and subsequent rejection of the revocation request. The Court noted that registered persons are bound to discharge GST liabilities and that collection of such dues serves the revenue interest. It further noted that in similar matters the Court and coordinate benches had directed restoration of registration upon payment of all statutory dues. In that background, the Court held that keeping the writ petition pending would serve no purpose and that the departmental authorities ought to re-consider revocation so that the petitioner may comply with tax obligations.

Conclusion: The cancellation order and the order rejecting revocation were set aside, and the authority was directed to intimate the outstanding statutory dues, if any, upon payment of which the petitioner's GST registration was to be restored.

Ratio Decidendi: Where GST registration is cancelled for non-filing of returns, the cancellation and refusal to revoke may be interfered with and registration restored on payment of outstanding statutory dues so that the assessee can continue to discharge tax obligations under the GST regime.

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