Facts of the Case

The petitioner approached the Uttarakhand High Court challenging the GST registration cancellation order dated 4 December 2018, passed by Respondent No. 2. The petitioner sought quashing of the cancellation order on the ground that it was violative of Articles 14, 19(1)(g), and 21 of the Constitution of India, the principles of natural justice, and the applicable SGST Act.

The petitioner also sought a direction to the respondent authorities to revive the GST registration certificate of the petitioner firm, enabling it to re-enter the GST chain, file the relevant returns, discharge due tax liability, and claim the benefit of input tax credit.

In the alternative, the petitioner sought the benefit of Input Tax Credit amounting to ₹33,12,559, against payment made by the petitioner to the State Government in connection with tenders for providing output services under the temporary registration granted to the petitioner, or alternatively, refund of the said amount.

Issues Involved

The principal issues arising from the petition were:

  1. Whether the GST registration cancellation order dated 04.12.2018 was liable to be quashed for alleged violation of constitutional protections, principles of natural justice, and the SGST Act.
  2. Whether the petitioner was entitled to revival or restoration of its GST registration so as to file pending returns, discharge tax liability, and claim eligible input tax credit.
  3. Whether an appeal under Section 107 of the Uttarakhand GST Act, 2017 could lie before the Commissioner, when the Division Bench had held that the Commissioner was not an adjudicating authority.
  4. Whether the petitioner could alternatively claim ITC of ₹33,12,559 or refund of that amount.

Petitioner’s Arguments

The petitioner contended that the GST registration cancellation order dated 04.12.2018 deserved to be quashed because it allegedly violated Articles 14, 19(1)(g), and 21 of the Constitution of India, the principles of natural justice, and the SGST Act.

The petitioner further sought revival of the GST registration certificate so that the firm could return to the GST framework, file relevant returns, pay the tax liability due, and avail eligible input tax credit. In the alternative, the petitioner claimed ITC of ₹33,12,559 or refund of the amount.

Most importantly, learned counsel for the petitioner submitted that the issue stood covered by the Division Bench judgment in SPA No. 123 of 2022 dated 20.06.2022, wherein the Court had held that the Commissioner is not an adjudicating authority and, therefore, an appeal under Section 107 of the Uttarakhand GST Act, 2017 would not lie to the Commissioner.

Respondent’s Arguments

The State was represented by the learned Brief Holder. However, the short order does not record any detailed or separate substantive arguments advanced on behalf of the respondents. Accordingly, no additional respondent contention should be attributed beyond what is expressly contained in the judicial order.

Court Order / Findings

The Uttarakhand High Court disposed of the writ petition by granting liberty to the petitioner to file an application before Respondent No. 2 – Assistant Commissioner, State Tax (A-01), State Goods and Services Tax Department, Kundeshwari, Kashipur, Uttarakhand, setting out the petitioner’s grievances.

The Court further directed in substance that:

  • if the petitioner pays the dues, if any, pending against it under the GST Act;
  • the petitioner’s application for restoration of GST registration may be considered liberally; and
  • such consideration should take place as early as possible.

The pending application was also disposed of.

Important Clarification

The Court did not directly restore the GST registration through the writ order. Instead, it granted the petitioner liberty to approach the concerned Assistant Commissioner and provided that, upon payment of pending GST dues, if any, the application for restoration could be considered liberally and as early as possible.

Further, the order should not be read as granting the claimed ITC of ₹33,12,559 or directing refund of that amount. Those were alternative prayers made by the petitioner; the operative order disposed of the writ petition by permitting an application before the concerned authority regarding the grievance and restoration of registration.

Section Involved

Section 107 of the Uttarakhand GST Act, 2017 – Appeals to Appellate Authority

The specific legal significance recorded in the order is that the petitioner relied upon the Division Bench decision in SPA No. 123 of 2022 dated 20.06.2022, which held that the Commissioner is not an adjudicating authority, and therefore an appeal under Section 107 would not lie to the Commissioner.

Clarification regarding the related precedent: The present two-page order records only the above legal proposition from SPA No. 123 of 2022. It does not reproduce the full factual matrix, complete party names, or the entire reasoning of that Division Bench judgment. Therefore, any further details should be verified from the full text of SPA No. 123 of 2022 before publication.

Key Legal Takeaway

Where GST registration has been cancelled and the remedy under Section 107 of the Uttarakhand GST Act, 2017 is affected by the principle that the Commissioner is not an adjudicating authority, the taxpayer may seek appropriate redress before the competent authority. In this case, the High Court permitted the petitioner to approach the concerned Assistant Commissioner and observed that, upon payment of pending GST dues, if any, the restoration application may be considered liberally and expeditiously. 

Link to Download the Order

https://mytaxexpert.co.in/uploads/1783320285_1057compressed.pdf

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