Facts of the Case

The petitioners' GST Registration was cancelled by order dated 05.10.2021 passed by the Assistant Commissioner, SGST, Lucknow, on the ground of non-payment of due tax. The petitioner's subsequent appeal was rejected by the Additional Commissioner, Grade-2 (Appeal), SGST Judicial Division-3, Lucknow, by order dated 12.10.2023 on the ground of delay. Thereafter, the petitioner cleared the outstanding tax amount along with interest and approached the High Court seeking renewal of registration.

Issues Involved

  1. Whether the GST authorities could be directed to renew a cancelled registration once the assessee has cleared the outstanding tax and interest, notwithstanding that the statutory appeal against cancellation had been dismissed on limitation.

Petitioner's Arguments

  • After the appellate order, the petitioner paid not only the tax amount but also the applicable interest, and was ready to pay any further amount communicated within seven days.
  • The respondent authority should be directed to renew the GST registration in view of the payments made.

Respondent's Arguments

  • The respondents' position, as reflected in the order, was based on the instructions confirming that the petitioner had indeed filed returns and paid the tax and interest due.

Court Order / Findings

  • On the basis of instructions confirming that the petitioner had filed returns and paid the tax and interest due, the Court found it appropriate to direct renewal of the registration.
  • Where an assessee whose registration stands cancelled for non-payment subsequently files returns and clears the tax and interest, the authority may be directed to renew the registration within a defined timeframe, even where the statutory appeal against cancellation has itself been rejected on limitation.
  • Respondent No.4 was directed to take steps to renew the GST registration within ten days, and to communicate any further amount due to the petitioner, who was directed to pay it within seven days of such communication.

Important Clarification

  • A cancelled GST registration can be revived through a direction obtained in writ jurisdiction upon the assessee filing returns and clearing dues, independent of and even after the statutory appellate remedy under Section 107 has been exhausted and rejected on delay.

Sections Involved

  • Section 29, CGST Act, 2017 - cancellation of registration for non-payment of tax due.
  • Section 30, CGST Act, 2017 - revocation of cancellation of registration.
  • Section 107, CGST Act, 2017 - appeal against orders of adjudicating authority.

Decision – In Favour of

The writ petition was disposed of in favour of the Assessee, with a direction to renew the GST registration within ten days upon confirmation that dues had been cleared.

Case Details

Court: Allahabad High Court, Lucknow Bench
Case No.: Writ Tax No. 211 of 2023
Coram: Justice Alok Mathur
Date of Order: 03.11.2023

Link to Download the Order

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