Facts of the Case

The petitioner approached the Hon'ble High Court of Uttarakhand via a writ petition (WPMS No. 3165 of 2022) to challenge an order dated May 10, 2022, which abruptly cancelled their GST Registration (GSTIN: 05AADCP7405JIZG). The petitioner declared full willingness to clear all outstanding statutory liabilities, including the balance tax principal, accrued interest, and any applicable late fees, in order to resume business operations. They sought a writ of certiorari to quash the cancellation order and a writ of mandamus directing the tax authorities to allow the submission of a revocation application under Section 30 of the CGST Act, 2017, ensuring its fair consideration on merits.

Issues Involved

  • Issue 1: Whether a writ petitioner can be permitted to file an application for revocation of GST registration cancellation under Section 30 of the CGST Act, 2017, upon a categorical undertaking to clear all pending tax, interest, and late fee dues.
  • Issue 2: Whether a statutory appeal under Section 107 of the Uttarakhand GST Act, 2017, lies before the Commissioner against such cancellation, considering prior judicial precedents regarding the adjudicating capacity of the Commissioner.

Petitioner’s Arguments

The learned counsel for the petitioner, Shri Ashish Agarwal, argued that the petitioner should not be left without a remedy and was entirely ready to clear the government exchequer's dues, including late fees and interest. Furthermore, the counsel strongly relied upon a controlling Division Bench judgment of the Uttarakhand High Court passed in SPA No. 123 of 2022 (dated 20.06.2022). Based on that precedent, it was contended that an appeal under Section 107 of the Uttarakhand GST Act, 2017, does not legally lie before the Commissioner because the Commissioner does not function as an "adjudicating authority" under the scheme of the Act, making a direct approach for revocation or writ relief necessary.

Respondent’s Arguments

The State was represented by Shri Tarun Lakhera, learned Brief Holder for the State of Uttarakhand. While the respondent side represented the interests of the state revenue department, they could not effectively controvert the binding legal positioning established by the earlier Division Bench judgment in SPA No. 123 of 2022 concerning the appellate jurisdiction of the Commissioner and the recovery of outstanding tax liabilities through proper statutory mechanisms.

Court Order / Findings

The Single Bench of Hon’ble Justice Shri Sanjaya Kumar Mishra disposed of the writ petition by explicitly granting liberty to the petitioner to approach the concerned respondent authority (Respondent No. 2). The Court ordered that if the petitioner successfully deposits and clears all pending statutory dues outstanding against them under the GST Act, the respondent authority must consider the petitioner’s application for the restoration of their GST registration "liberally" and in accordance with the law.

Important Clarification

The order reaffirms a vital jurisdictional principle for GST litigation in the state of Uttarakhand: The Commissioner is not an adjudicating authority under the Act. Consequently, aggrieved taxpayers cannot file statutory appeals under Section 107 before the Commissioner against registration cancellations. Instead, the appropriate path is either utilizing the revocation channel under Section 30 after clearing outstanding liabilities, or seeking constitutional remedies if departmental channels face jurisdictional blocks.

Section Involved

  • Section 30 of the CGST / SGST Act, 2017: Revocation of cancellation of GST registration.
  • Section 107 of the Uttarakhand GST Act, 2017: Appeals to Appellate Authority (Jurisdictional maintainability before the Commissioner).

Link to download the order - https://mytaxexpert.co.in/uploads/1782977396_285compressed.pdf

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