Facts of the Case

The petitioner challenged the order dated 07.01.2022 cancelling its GST registration. The petitioner submitted before the High Court that it was willing to clear all outstanding tax liabilities together with applicable interest and late fees. It further sought permission to file an application under Section 30 of the CGST Act, 2017 for revocation of cancellation of GST registration and requested a direction to the competent authority to consider such application in accordance with law.

The petitioner relied upon an earlier Division Bench judgment of the Uttarakhand High Court 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 would not lie before the Commissioner.

 

Issues Involved

  1. Whether the petitioner could seek restoration of cancelled GST registration after expressing willingness to pay all pending GST dues.
  2. Whether an appeal under Section 107 of the Uttarakhand GST Act was maintainable before the Commissioner.
  3. Whether the petitioner should be permitted to approach the competent authority under Section 30 of the CGST Act for revocation of cancellation of GST registration.

 

Petitioner's Arguments

  • The GST registration had been cancelled by order dated 07.01.2022.
  • The petitioner expressed readiness to pay the entire outstanding tax liability along with applicable interest and late fees.
  • It requested permission to file an application under Section 30 of the CGST Act for revocation of cancellation of registration.
  • Reliance was placed upon the Division Bench judgment dated 20.06.2022 holding that the Commissioner is not an adjudicating authority and that an appeal under Section 107 would not lie before the Commissioner.

 

Respondent's Arguments

The respondents were represented by the learned Brief Holder. The order primarily records the submissions of the petitioner and the legal position arising from the earlier Division Bench judgment, without recording any detailed independent objections on behalf of the respondents.

 

Court Order / Findings

The Uttarakhand High Court disposed of the writ petition by granting liberty to the petitioner to file an application before the Assistant Commissioner, State Goods & Services Tax, Kashipur Sector-I, Uttarakhand, ventilating its grievances.

The Court further directed that:

  • If the petitioner deposits all pending GST dues, the competent authority shall consider the application for restoration of GST registration liberally.
  • The petitioner shall file the returns for the six months that had remained pending.
  • The petitioner shall also file all monthly GST returns from January 2022 up to the date of filing the representation.
  • The pending application also stood disposed of.

 

Important Clarification

  • The High Court reiterated the legal position laid down in the earlier Division Bench decision 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.
  • Taxpayers whose GST registrations have been cancelled may seek revocation under Section 30 of the CGST Act, 2017, subject to compliance with statutory requirements.
  • The Court emphasized a liberal approach in considering restoration where the taxpayer is willing to discharge tax liabilities and regularize pending statutory compliances by filing overdue GST returns.

Sections Involved

  • Section 30 of the Central Goods and Services Tax Act, 2017 – Revocation of Cancellation of Registration.
  • Section 107 of the Uttarakhand GST Act, 2017 – Appeals.
  • Provisions relating to cancellation and restoration of GST registration.


Link to download the order -

https://mytaxexpert.co.in/uploads/1782968728_169compressed.pdf

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