Facts of the Case

The petitioner challenged the order dated 08.08.2021 cancelling the GST registration and sought its restoration. The petitioner expressed willingness to pay the outstanding GST liability along with applicable interest and late fee. The petitioner also sought permission to file an application under Section 30 of the CGST Act, 2017 for revocation of cancellation of GST registration and requested appropriate directions for consideration of such application in accordance with law.

 

Issues Involved

  1. Whether an appeal under Section 107 of the Uttarakhand GST Act, 2017 is maintainable before the Commissioner against cancellation of GST registration.
  2. Whether the petitioner should be permitted to seek restoration of GST registration by filing an application before the proper authority after clearing outstanding dues.
  3. Whether the authorities should consider the application for revocation of cancellation liberally after compliance with statutory requirements.

 

Petitioner's Arguments

  • The petitioner submitted that he was ready and willing to discharge the outstanding GST liability together with interest and late fee.
  • The petitioner prayed for quashing of the cancellation order.
  • It was argued that permission should be granted to file an application under Section 30 of the CGST Act, 2017 for revocation of cancellation of GST registration.
  • Reliance was placed upon the Division Bench judgment in SPA No. 123 of 2022 (decided on 20.06.2022), wherein it was held that the Commissioner is not the adjudicating authority for entertaining an appeal under Section 107 in such matters.

 

Respondent's Arguments

The State opposed the writ petition through its counsel. However, the Court considered the legal position already settled by the Division Bench regarding the maintainability of appeals under Section 107 before the Commissioner and proceeded accordingly.

 

Court Order / Findings

The Uttarakhand High Court disposed of the writ petition with the following directions:

  • Following the earlier Division Bench judgment in SPA No. 123 of 2022, the Court reiterated 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.
  • Liberty was granted to the petitioner to file an appropriate application before the Assistant Commissioner, State Goods & Services Tax, Nainital for redressal of grievances.
  • If the petitioner clears the outstanding GST dues, the application for restoration of GST registration shall be considered liberally by the competent authority.
  • The petitioner was directed to file all pending GST returns for six months along with monthly returns from 08.08.2021 till the date of filing the representation.
  • The petitioner undertook to withdraw the appeal pending before the Joint Commissioner (Appeals), State Goods & Services Tax, Dehradun.
  • All pending applications stood disposed of.

 

Important Clarification

  • Appeal under Section 107 of the Uttarakhand GST Act, 2017 against cancellation of GST registration is not maintainable before the Commissioner.
  • The proper remedy is to approach the competent authority under Section 30 of the CGST Act, 2017 for revocation of cancellation.
  • Courts may direct the authorities to adopt a liberal approach where the taxpayer is willing to clear tax dues and comply with statutory filing requirements.
  • The judgment follows the principle laid down by the Division Bench in SPA No. 123 of 2022 (20.06.2022).

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/1782969597_83compressed.pdf

 

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