Facts of the Case

The petitioner challenged the Cancellation Order (GST REG-19) dated 11.11.2021, whereby his GST registration was cancelled. The petitioner sought quashing of the cancellation order, restoration of his GST registration, and appropriate directions on the ground that cancellation had adversely affected his business activities and infringed his legal rights. During the hearing, reliance was placed upon the Division Bench judgment in SPA No. 123 of 2022 dated 20.06.2022, wherein it was held that the Commissioner is not an adjudicating authority for the purpose of filing an appeal under Section 107 of the Uttarakhand GST Act.

 

Issues Involved

  1. Whether an appeal under Section 107 of the Uttarakhand GST Act, 2017 lies before the Commissioner against the cancellation of GST registration.
  2. Whether the petitioner should be granted an opportunity to seek restoration of GST registration by approaching the competent authority after complying with statutory requirements.

 

Petitioner’s Arguments

  • The petitioner submitted that the GST registration had been cancelled through Order in Form GST REG-19 dated 11.11.2021, causing severe prejudice to the continuation of business.
  • It was argued that the issue was already settled by the Division Bench judgment in SPA No. 123 of 2022 dated 20.06.2022, which held that the Commissioner is not the adjudicating authority under Section 107 of the Uttarakhand GST Act.
  • The petitioner requested restoration of GST registration and suitable directions permitting continuation of business activities.

 

Respondent’s Arguments

  • The respondents were represented before the Court.
  • The matter was considered in light of the existing legal position laid down by the Division Bench regarding the appellate remedy under Section 107 of the Uttarakhand GST Act, 2017.

 

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, Sector-1, Rishikesh, Dehradun, Uttarakhand, by filing an appropriate application ventilating his grievances.

The Court further directed that:

  • If the petitioner pays the GST dues pending against him, the application for restoration of GST registration shall be considered liberally by the competent authority.
  • The petitioner shall file the pending returns for the six months that remained unfiled together with the monthly returns from 11.11.2021 till the date of filing the representation.
  • Upon compliance with these directions, the competent authority shall consider restoration of the GST registration in accordance with law.

 

Important Clarification

  • The High Court reiterated the legal position that, in view of the earlier Division Bench judgment, the Commissioner is not the adjudicating authority for the purpose of an appeal under Section 107 of the Uttarakhand GST Act, 2017.
  • The Court emphasized that taxpayers whose registrations have been cancelled may seek restoration before the competent authority after clearing statutory dues and filing pending GST returns.
  • The judgment reinforces a liberal approach towards restoration of GST registration where statutory compliance is subsequently made by the taxpayer.

Relevant Sections Involved

  • Section 107 of the Uttarakhand Goods and Services Tax Act, 2017 – Appeals to Appellate Authority.
  • Provisions relating to Cancellation and Restoration of GST Registration under the GST law.

 

Link to download the order -

https://www.mytaxexpert.co.in/uploads/1782970993_95compressed.pdf

 

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