Facts of the Case

This writ petition under Article 226 of the Constitution of India was filed by Pramod Kumar Sharma and another before the Allahabad High Court, challenging two orders: the order dated 05.10.2021 passed by the Assistant Commissioner, SGST, Lucknow, cancelling the petitioner's GST registration on the ground of non-payment of tax due, and the subsequent order dated 12.10.2023 passed by the Additional Commissioner, Grade-2 (Appeal), SGST, rejecting the petitioner's appeal (Appeal No. 64 of 2023) solely on the ground of delay. Between the appellate rejection and the filing of this petition, the petitioner deposited the entire outstanding tax as well as interest. The matter was heard by a single judge of the Allahabad High Court and disposed of on 03.11.2023.

Issues Involved

  1. Whether a GST registration cancelled for non-payment of tax can be restored where the tax and interest have since been paid, notwithstanding that the statutory appeal against cancellation was dismissed on the ground of delay.

Petitioner's Arguments

  • The petitioner had already deposited the entire outstanding tax amount along with interest after the appellate order was passed.
  • The petitioner was ready and willing to pay any further amount, if intimated, within seven days of communication.
  • On this basis, the respondent authority should be directed to renew the petitioner's GST registration.

Respondent's Arguments

  • The order records no independent opposing submissions by the Union of India or the State on the factual position regarding payment of tax and interest.
  • The Court proceeded on instructions taken from the petitioner's side, without any recorded rebuttal from the respondents on the payment claim.

Court Order/Findings

  • The Court noted, on the basis of instructions, that the petitioner had filed the returns and paid both the tax and the interest due.
  • The respondent authority was directed to take steps for renewing the GST registration of the petitioner within ten days from communication of the order.
  • If any further amount was found due, the petitioner was to be intimated, and was directed to pay the same within seven days of such communication.
  • The writ petition was accordingly disposed of.

Important Clarification

  • Restoration of GST registration cancelled for non-payment of tax is available even where the statutory appeal against the cancellation order has been dismissed as time-barred, provided the underlying tax and interest liability is cleared.
  • Courts are willing to grant this relief in writ jurisdiction rather than insisting that the taxpayer be confined to the appellate remedy.
  • Any residual dues intimated by the department after restoration must still be paid within the timeline fixed by the Court for the restoration to hold good.

Sections Involved

  • Section 29, CGST Act, 2017 – governs cancellation of GST registration, including for non-payment of tax.
  • Section 107, CGST Act, 2017 – prescribes the appeal to the Appellate Authority and the limitation period for filing it.
  • Article 226, Constitution of India – writ jurisdiction invoked to seek restoration of registration.

Decision – In Favour of

In favour of the Assessee. The Court directed renewal of the GST registration on the petitioner having paid the outstanding tax and interest, notwithstanding the dismissal of the statutory appeal on delay.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: Allahabad High Court
  • Case No.: WRIT TAX No. 211 of 2023
  • CNR: Not available on record
  • Coram: Hon'ble Alok Mathur, J.
  • Decision Date: 03.11.2023
  • Disposal Nature: Disposed of - respondent directed to renew GST registration on payment of tax/interest

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