Facts of the Case

The petitioner challenged the order dated 10.06.2022 cancelling its GST registration. The petitioner submitted that it was willing to discharge all outstanding GST liabilities, including tax, applicable interest, and late fees. The petitioner sought permission to file an application under Section 30 of the Central Goods and Services Tax Act, 2017 for revocation of cancellation of GST registration and requested that the competent authority be directed to consider such application in accordance with law.

The petitioner further relied upon the Division Bench judgment rendered 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 is not maintainable before the Commissioner.

 

Issues Involved

  1. Whether the cancellation of GST registration deserved interference by the High Court.
  2. Whether the petitioner should be permitted to seek revocation of cancellation under Section 30 of the CGST Act, 2017.
  3. Whether an appeal under Section 107 of the Uttarakhand GST Act, 2017 lies before the Commissioner.
  4. Whether the petitioner should be granted an opportunity to restore GST registration after payment of pending dues and filing pending returns.

 

Petitioner’s Arguments

  • The petitioner contended that it was prepared to pay all outstanding GST dues along with applicable interest and late fees.
  • It sought liberty to file an application for revocation of cancellation of GST registration under Section 30 of the CGST Act, 2017.
  • The petitioner argued that the controversy was already covered by the Division Bench decision in SPA No. 123 of 2022, wherein it was held that the Commissioner is not an adjudicating authority and, consequently, an appeal under Section 107 of the Uttarakhand GST Act, 2017 is not maintainable before the Commissioner.
  • Accordingly, the petitioner requested appropriate directions for restoration of GST registration in accordance with law.

 

Respondent’s Arguments

The respondents were represented by the learned Brief Holder. The order primarily records the submissions of the petitioner and the Court proceeded to dispose of the writ petition by issuing appropriate directions based upon the legal position settled by the Division Bench judgment.

 

Court Order / Findings

The High Court disposed of the writ petition by granting liberty to the petitioner to approach the Assistant Commissioner, State Goods & Services Tax, Haldwani Sector–2, Uttarakhand, for redressal of its grievance.

The Court directed that:

  • The petitioner may file an appropriate application before the Assistant Commissioner.
  • If the petitioner clears all outstanding GST dues, the application for restoration of GST registration shall be considered liberally in accordance with law.
  • The petitioner shall also file the GST returns for the six months that remained pending together with the monthly returns from 10.06.2022 till the date of filing of the representation.
  • The pending application also stood disposed of.

The Court followed the earlier Division Bench judgment holding that the Commissioner is not the adjudicating authority for the purpose of filing an appeal under Section 107 of the Uttarakhand GST Act, 2017.

 

Important Clarification

  • Section 30 of the CGST Act, 2017 enables a registered person to seek revocation of cancellation of GST registration, subject to fulfillment of statutory requirements.
  • The judgment reiterates that where the Commissioner is not the adjudicating authority, an appeal under Section 107 of the Uttarakhand GST Act, 2017 before the Commissioner is not maintainable.
  • The High Court emphasized that where the taxpayer clears pending dues and files pending GST returns, the competent authority should consider restoration of GST registration liberally.
  • The proper remedy in such circumstances is to approach the jurisdictional competent authority instead of pursuing an appeal before an authority lacking jurisdiction.

 

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.
  • Provisions relating to cancellation and restoration of GST Registration under the GST law.


Link to download the order -

https://www.mytaxexpert.co.in/uploads/1782969612_85compressed.pdf

 

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