Conditional restoration of GST registration ordered where cancellation arose from non-filing of returns and arrears were paid.

Cancellation of GST registration for prolonged non-filing of returns was set aside, and registration was directed to be restored on conditional compliance with payment of the outstanding dues, interest, late fee and penalty within the stipulated time. The HC noted the taxpayer's explanation for the default, including financial hardship and Covid-related disruption, and also considered that similar relief had been granted in a comparable case. As the State did not oppose a similar conditional order, the impugned appellate rejection was also quashed.

---

---

Issues: Whether the cancellation of GST registration for non-filing of returns should be set aside and the registration restored on payment of outstanding dues, interest, late fee and penalty.

Analysis: The Petitioner had defaulted in filing GST returns for a substantial period and the registration had been cancelled, with the appellate challenge having failed on account of non-appearance. The Court noted the explanation offered for the default, including financial and disruption during the Covid period, and also relied on the fact that a similarly situated assessee had been granted relief. The State did not oppose a similar order if appropriate safeguards were imposed. The Court therefore accepted that relief could be granted in a conditional form, linked to determination and payment of the arrears.

Conclusion: The cancellation and the appellate rejection were quashed and set aside, and GST registration was directed to be restored upon payment of the amount intimated by the authorities within the stipulated time.

Final Conclusion: The petition succeeded to the extent of conditional restoration of GST registration, subject to compliance with the payment directions, and the impugned orders ceased to operate.

Ratio Decidendi: Where cancellation of GST registration results from non-filing of returns, relief may be granted by conditional restoration upon payment of the outstanding statutory dues and allied liabilities, particularly when parity with similarly situated cases supports such relief.

---