Facts of the Case

The petitioner approached the Uttarakhand High Court challenging the order dated 16.10.2020 cancelling the GST registration. The petitioner expressed willingness to discharge the outstanding GST liability along with applicable interest and late fee and sought restoration of the GST registration. The petitioner also prayed for a direction permitting the filing of an application under Section 30 of the CGST Act, 2017 for revocation of cancellation of GST registration and requested that the appeal be decided on merits.

 Issues Involved

  1. Whether an appeal against cancellation of GST registration lies before the Commissioner under Section 107 of the Uttarakhand GST Act, 2017.
  2. Whether the petitioner should be permitted to file an application for revocation of cancellation of GST registration under Section 30 of the CGST Act, 2017.
  3. Whether the GST authorities should consider restoration of GST registration after payment of pending GST dues.

 Petitioner's Arguments

The petitioner submitted that the controversy was already covered by the judgment of the Division Bench 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 consequently, an appeal under Section 107 of the Uttarakhand GST Act, 2017 does not lie before the Commissioner. The petitioner further undertook to pay the outstanding tax, applicable interest and late fee and requested restoration of the GST registration through appropriate statutory proceedings.

 Respondent's Arguments

The order records the appearance of the State through the learned Brief Holder. The Court considered the legal position already settled by the Division Bench regarding the maintainability of the appeal under Section 107 and proceeded to dispose of the writ petition accordingly.

 Court Order / Findings

The Uttarakhand High Court observed that the issue stood covered by the earlier Division Bench judgment holding 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.

Accordingly, the Court disposed of the writ petition by granting liberty to the petitioner to approach the Superintendent, State GST, Haldwani, Uttarakhand, by filing an appropriate application ventilating the grievance. The Court further observed that if the petitioner clears the outstanding GST dues, the application for restoration of GST registration may be considered liberally in accordance with law. Pending applications were also disposed of.

 Important Clarification

  • The Commissioner is not an adjudicating authority for the purpose of filing an appeal under Section 107 of the Uttarakhand GST Act, 2017.
  • Taxpayers whose GST registration has been cancelled may seek revocation under Section 30 of the CGST Act, 2017, subject to compliance with statutory requirements.
  • Payment of pending GST dues may be considered as a relevant factor while deciding an application for restoration of GST registration.
  • The competent GST authority should consider such applications in accordance with law and, where appropriate, adopt a liberal approach.

 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.

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785142960_2061compressed.pdf

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