GST registration cancellation quashed as restoration was allowed subject to filing returns and clearing compliance dues

Ex parte GST registration cancellation was quashed where the assessee undertook to regularise compliance by filing pending returns and paying tax dues. The HC applied its consistent approach of restoring registration when the taxpayer shows willingness to cure defaults within a reasonable time. The appellate order affirming cancellation was also set aside, and restoration was directed subject to uploading the returns and offering tax, interest and penalty within two weeks from the date the portal enables compliance.

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Issues: Whether the cancellation of GST registration and the appellate order confirming it should be quashed and registration restored, subject to compliance with filing of returns and payment of tax dues.

Analysis: The cancellation had been made ex parte. The petitioner expressed willingness to file all pending returns and to pay tax, interest, and penalty once the portal enabled compliance. In such circumstances, the Court followed its consistent approach of permitting restoration of registration where the assessee undertakes to regularise compliance within a reasonable time.

Conclusion: The cancellation order and the appellate order were quashed, and restoration of registration was directed subject to the petitioner uploading the returns and offering tax, interest, and penalty within two weeks from the date the portal enables such compliance.

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