Facts of the Case

The petitioner's GST registration bearing GSTIN 05AFSPC8838D1ZB was cancelled on the ground of default in payment of certain taxable dues, in exercise of powers under Section 29(2)(c) of the Uttarakhand Goods and Services Tax Act, 2017. The judgment does not name the petitioner beyond this GSTIN. Counsel for the petitioner relied on an earlier order of the same Court in Writ Petition (M/S) No. 1553 of 2021, decided 18.8.2022, involving an almost identical situation, where the Court had directed that the cancelled registration would be treated as renewed and revived within three weeks of the petitioner depositing the entire defaulted amount, including penalty and interest. Both parties agreed that the present petition could be disposed of finally on the same terms.

Issues Involved

  1. Whether a GST registration cancelled under Section 29(2)(c) of the Uttarakhand GST Act, 2017 for default in payment of dues can be revived upon deposit of the defaulted tax, penalty and interest.

Petitioner's Arguments

  • Relied on the Court's earlier order in Writ Petition (M/S) No. 1553 of 2021, decided on an almost identical situation, directing revival of the cancelled registration within three weeks of depositing the entire defaulted amount, including penalty and interest.
  • Agreed that if the present petition was disposed of on the same terms, the petitioner would have no further grievance.

Respondent's Arguments

  • The State's counsel, on instructions, confirmed that if the petitioner deposited the entire defaulted amount including penalty and interest (to the extent not already deposited), as it stood on the date of cancellation, the registration would be considered renewed within three weeks of the deposit.

Court Order/Findings

  • Recording the consensus between the parties, disposed of the writ petition with the direction that upon the petitioner depositing the entire defaulted amount, including penalty and interest payable, as it stood on the date of cancellation, the registration would be considered renewed by the respondents within three weeks from the date of deposit.

Important Clarification

  • A GST registration cancelled for default in payment of dues under Section 29(2)(c) can be revived by consent, without a contested hearing, once the assessee agrees to deposit the entire defaulted tax, penalty and interest as it stood on the cancellation date.
  • Courts are following a template of allowing three weeks for the department to restore registration after full deposit, based on precedent within the same jurisdiction.

Sections Involved

  • Section 29(2)(c) of the Uttarakhand Goods and Services Tax Act, 2017 – empowers cancellation of registration for default in payment of tax dues.

Decision – In Favour of

Disposed of with directions, in part in favour of the Assessee — the registration cancellation was not set aside on merits, but a consent-based revival path was directed conditional on full payment of defaulted dues.

Related Case Laws

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

Case Details

  • Court: Uttarakhand High Court
  • Case No.: WPMS No. 2770 of 2023
  • CNR: Not available on record
  • Coram: Hon'ble Sharad Kumar Sharma, J.
  • Decision Date: 05.10.2023
  • Disposal Nature: Disposed of; cancelled GST registration to be renewed within three weeks of depositing defaulted tax, penalty and interest

Link to Download the Order

Download the full judgment (PDF)

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.