GST registration cancellation for non-filing may be reversed conditionally where regularisation and compliance better protect revenue interests.

Cancellation of GST registration for non-furnishing of returns is described as capable of being set aside where the default can be regularised and there is no allegation of tax evasion. The note explains that a pragmatic approach supports restoration because cancellation prevents business operations and invoice generation, which can also hinder revenue recovery. It states that restoration may be granted conditionally, requiring the taxpayer to file pending returns and pay applicable tax, interest, penalty and fine within the prescribed period, with non-compliance resulting in loss of the relief.

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

Analysis: The registration had been cancelled on the ground of non-filing of returns under the GST law. The Court noted that there was no allegation of a dubious device to evade tax and that cancellation would be counterproductive, as the petitioners would be unable to carry on business or raise invoices, which would also impede revenue recovery. The Court held that a pragmatic approach was warranted and that the petitioners should be permitted to regularise the default by filing returns and paying the applicable tax, interest, penalty and fine.

Conclusion: The cancellation order was set aside conditionally, with restoration of registration directed upon compliance within the stipulated period; failing compliance, the writ petition would stand dismissed automatically.

Final Conclusion: The petitioners obtained conditional relief against cancellation of GST registration, and the matter was disposed of with restoration dependent on timely compliance with filing and payment requirements.

Ratio Decidendi: Cancellation of GST registration for non-filing of returns may be interfered with where the default is capable of regularisation and restoration of registration would better serve revenue interests, subject to full compliance with statutory dues and return filing.

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