In a recent ruling, the Karnataka High Court held that a GSTIN cancelled for non-filing of GST returns can be restored if the taxpayer is willing to pay the outstanding dues, and that an appeal should not be rejected solely on the ground of limitation.
The applicant, G.L. Thippeswamy Contractor, submitted the appeal as his registration was cancelled via the Assistant Commissioner for failure to submit returns for a continuous period of 6 months.
Important: Gauhati HC: Cancellation Process Shall Be Dropped If Dues and GST Returns Are Cleared
The applicant’s appeal against this cancellation was thereafter dismissed by the Joint Commissioner of Commercial Taxes (Appeals) on the basis of limitation, marking that the appeal was not submitted within the specified 3-month duration.
The applicant’s representative said that monthly returns had been submitted until the date of the cancellation order and that the taxpayer desires to submit all the due returns and file the requisite taxes, interest, and penalty once the GST portal is enabled.
The Court said that the cancellation order was an ex parte decision. The Court has consistently held that registration can be restored if the assessee agrees to pay all tax dues, including interest and penalties.
“It emerges that the Court’s consistent view, when the decision to cancel registration is an ex parte decision and the assessee is willing to offer all the tax with interest, is to allow restoration of registration subject to the assessee filing upto date Returns and offering tax, interest and penalty within a reasonable time,” Justice B.M. Shyam stated.
Read Also: Karnataka HC Sets Aside GST Registration Cancellation Due to Taxpayer’s Judicial Custody
In this case, the High Court overturned the cancellation order and also nullified the appellate decision that dismissed the appeal on grounds of limitation.
The Court instructed that the registration be restored, provided the applicant submits all necessary returns and pays the taxes, interest, and penalties within 2 weeks of the portal being enabled for these actions.
| Case Title | G.L. Thippeswamy Contractor vs. The Commissioner of Commercial Taxes |
| Case No. | WP NO. 13959 OF 2026 (T-RES) |
| Counsel For Petitioner | Sri. Renukaprasad C M |
| Counsel For Respondent | Sri. K. Hema Kumar |
| Karnataka High Court | Read Order |
