Facts of the Case

The petitioner approached the High Court challenging the order dated 12.05.2022 whereby the GST registration was cancelled. The petitioner submitted that he was ready and willing to file all pending GST returns and discharge the outstanding tax liability, including applicable interest and late fees. Accordingly, he sought quashing of the cancellation order and permission to file an application for revocation of cancellation of GST registration under Section 30 of the Central Goods and Services Tax Act, 2017.

 

Issues Involved

  1. Whether the petitioner could seek revocation of cancellation of GST registration after expressing willingness to clear all statutory dues and file pending returns.
  2. Whether an appeal under Section 107 of the Uttarakhand GST Act, 2017 was maintainable before the Commissioner against the cancellation order.
  3. Whether the Assistant Commissioner could consider the petitioner's application for restoration of GST registration after compliance with statutory requirements.

 

Petitioner’s Arguments

  • The petitioner contended that he was prepared to file all defaulted GST returns from the date of cancellation till the date of restoration.
  • He undertook to pay the outstanding tax, interest and late fee, if any.
  • It was argued that the controversy was already covered by the Division Bench judgment passed in SPA No. 123 of 2022 dated 20.06.2022, wherein it was held that the Commissioner is not an adjudicating authority and, therefore, an appeal under Section 107 of the Uttarakhand GST Act, 2017 does not lie before the Commissioner.
  • Accordingly, the petitioner requested liberty to apply for revocation of cancellation under Section 30 of the CGST Act, 2017.

 

Respondent’s Arguments

The State opposed the writ petition through its learned Brief Holder. However, the Court considered the legal position already settled by the Division Bench regarding the maintainability of an appeal under Section 107 before the Commissioner.

 

Court Order / Findings

The High Court disposed of the writ petition by granting liberty to the petitioner to file an appropriate application before the Assistant Commissioner, GST, Rishikesh, Sector-2, Uttarakhand.

The Court directed that:

  • The petitioner shall file all pending GST returns from the date of cancellation till the date of application.
  • The petitioner shall clear all outstanding tax dues, along with applicable interest, late fee and other statutory liabilities.
  • Upon such compliance, the application for restoration/revocation of GST registration should be considered liberally by the competent authority in accordance with law.

The Court also relied upon the earlier Division Bench judgment holding that the Commissioner is not an adjudicating authority and, therefore, an appeal under Section 107 of the Uttarakhand GST Act, 2017 is not maintainable before the Commissioner.

 

Important Clarification

  • Cancellation of GST registration does not permanently deprive a registered person of restoration where statutory compliance is subsequently made.
  • Revocation under Section 30 of the CGST Act, 2017 may be considered after filing pending returns and payment of all outstanding dues.
  • The competent authority should adopt a liberal approach where the taxpayer regularises the defaults.
  • As held in SPA No. 123 of 2022, the Commissioner is not an adjudicating authority, and consequently an appeal under Section 107 of the Uttarakhand GST Act, 2017 does not lie before the Commissioner.

 

Sections Involved

  • Section 30 of the Central Goods and Services Tax Act, 2017 – Revocation of cancellation of registration.
  • Section 107 of the Uttarakhand Goods and Services Tax Act, 2017 – Appeals.


Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1782891572_60.pdf

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