AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 1560
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....us : "(b) that this Hon'ble Court be pleased to issue a writ of Mandamus or a writ in the nature of Mandamus or any other writ, order or direction under Article 226 of the Constitution of India, calling for the records pertaining to the cancellation of the Petitioner's registration and after going into the validity and legality thereof be pleased to direct the Respondents to restore the GST registration of the Petitioner forthwith, with all consequential benefits, including but not limited to enabling the Petitioner to file pending returns and make payment of tax, interest and late fees, if any, in accordance with law; (c) that this Hon'ble Court be pleased to issue a writ of Mandamus or a writ in the nature of Mandamus or any other writ, order or direction under Article 226 of the Constitution of India, calling for the records pertaining to the cancellation of the Petitioner's registration and after going into the validity and legality thereof be pleased to direct the Respondents to allow the Petitioner to file pending returns as may be necessary for the regularization of compliance; (d) that this Hon'ble Court be pleased to issue a writ of Mandamus or a....
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.... cancelled. It is the Petitioner's contention that under the proviso to Section 29 of the CGST Act, the GST authority shall not cancel the registration without giving an opportunity of being heard. However, it is the Petitioner's case that in breach of the said proviso, an order dated 21st December 2020 came to be passed whereby the Petitioner's registration came to be cancelled retrospectively with effect from 31st July 2017. 6. The Petitioner contends that the Respondent no. 3 thereafter issued an order dated 10th February 2022 demanding interest under Section 50(1) of the CGST Act for the financial year 2017-18. Further, on 25th October 2024, the Central Anti-Evasion Wing conducted a search at the Petitioner's premises and statements were recorded on the same day and on 28th October 2024. On 14th January 2025, the Respondent no. 3 issued an intimation in the form DRC-01A under Section 74(5) of the CGST Act ascertaining the tax liability of the Petitioner. On 6th February 2025, the Petitioner in response to the said notice submitted a detailed reply enclosing evidence of voluntary payment of the entire GST liability along with interest and penalty. On such backdrop, another no....
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....t in allowing the petition. 10. We have heard learned counsel for the parties. With their assistance, we have perused the record. At the outset, we may observe that the issue in regard to cancellation of registration of GST is governed by Chapter-VI of the CGST Act, 2017 and similar provisions under the Maharashtra Goods and Services Tax Act, 2017. Section 25 provides for procedure for registration. The relevant provisions in the present facts and circumstances are Section 29, which provides for cancellation or suspension of registration, Section 30 which provides for revocation of cancellation of registration and Rule 23 of the CGST Rules, 2017. These provisions are required to be noted which read thus : "Section 29. Cancellation or suspension of registration - (1) The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,- (a) the business has been discontinued, transferred fully for any reason including death of the proprietor, ....
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....Act. (5) Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed: Provided that in case of capital good or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher. (6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed. (emphasis supplied) Section 30. Revocation of cancellation of registration : (1) Subject to such conditions as may be prescribed, any registered person, whose regist....
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....of registration till the date of the order of revocation of cancellation of registration shall be furnished by the said person within a period of thirty days from the date of order of revocation of cancellation of registration : Provided also that where the registration has been cancelled with retrospective effect, the registered person shall furnish all returns relating to period from the effective date of cancellation of registration till the date of order of revocation of cancellation of registration within a period of thirty days from the date of order of revocation of cancellation of registration. (2) (a) Where the proper officer is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, he shall revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant. (b) The proper officer may, for reasons to be recorded in writing, under circumstances other than those specific in clause (a), by an order in FORM GST REG-05, reject the application for revoca....
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....we find that all these issues are not taken into consideration as in the present case and such matters unwarrantedly reach the Court. In the facts of the present case, the Revenue has taken a clear position that there are no tax dues, as all the demands have stood satisfied. 12. The Courts have consistently taken a view that keeping such registration cancelled and/or not revoking the cancellation of registration, does not enure to the benefit of the Revenue, apart from the prejudice which would be caused to the person whose registration has been cancelled. In Azaria Corp LLP Vs. The Deputy Commissioner of State Tax (MUM-VAT-E-809) and another (supra) relied on behalf of the Petitioner, in such context, the Court observed thus : "11. In the decisions relied upon by the Petitioner, the common thread was that the restoration of the registration would benefit the Petitioner as well as the Revenue. The Petitioner would be able to undertake its business and pay GST in terms of the law. A permanent cancellation and that too for failure to file returns or pay dues, may not be in the interest of either the Petitioner or the Respondents. In this case, as noted earlier, the Petiti....