Facts of the Case

The petitioner, Harun Rasid, challenged the order passed by the Additional Commissioner of State Taxes (Appeal), whereby his statutory appeal against cancellation of GST registration was dismissed solely on the ground of delay. The petitioner also challenged the ex parte Order-in-Original cancelling his GST registration under Section 29 of the Goods and Services Tax Act, 2017, along with the Show Cause Notice issued prior to such cancellation.

The petitioner sought quashing of the appellate order, the cancellation order, and the show cause notice, while requesting restoration and reactivation of his GST registration.

 

Issues Involved

  1. Whether the dismissal of the statutory appeal merely on the ground of limitation should prevent consideration of restoration of GST registration.
  2. Whether the petitioner should be granted an opportunity to seek revocation of cancellation of GST registration.
  3. Whether the competent authority should examine the restoration application on merits without rejecting it due to limitation.

 

Petitioner's Arguments

  • The petitioner contended that the GST registration had been cancelled through an ex parte order.
  • The appellate authority dismissed the appeal only on the ground of delay without examining the merits of the case.
  • The petitioner expressed readiness and willingness to comply with all statutory requirements for restoration of registration.
  • The petitioner undertook to discharge all outstanding tax liabilities and fulfil all legal formalities if granted an opportunity for revocation of cancellation.

 

Respondents' Arguments

The State defended the orders passed by the tax authorities. However, during the hearing, the Court considered the petitioner's willingness to comply with statutory requirements and focused on providing an opportunity for restoration in accordance with law rather than deciding the dispute solely on technical grounds.

 

Court Order / Findings

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

  • The petitioner was permitted to file an appropriate application before the competent GST authority seeking restoration/revocation of cancellation of GST registration.
  • Upon receipt of such application, the competent authority was directed to pass an appropriate order in accordance with law within four weeks.
  • The petitioner undertook to deposit all applicable dues and taxes within four weeks from the date of the authority's decision.
  • The High Court specifically directed that the issue of limitation shall not come in the way of considering the petitioner's application on merits.
  • The writ petition was accordingly disposed of.

 

Important Clarification

This judgment reiterates that where a taxpayer is willing to regularise defaults, complete statutory compliances and discharge tax liabilities, the authorities should consider restoration of GST registration on merits rather than rejecting the request solely on technical grounds of limitation.

The decision promotes substantive justice over procedural technicalities and enables genuine taxpayers to revive cancelled registrations after complying with statutory requirements.

 

Sections Involved

  • Section 29 of the Central Goods and Services Tax Act, 2017 – Cancellation of Registration.
  • Corresponding provisions under the Bihar Goods and Services Tax Act, 2017.
  • Provisions relating to appeals under the GST law.


Link to download the order -

https://www.mytaxexpert.co.in/uploads/1782890986_161compressed.pdf

 

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