GST Registration Must Be Reinstated If Dues Are Cleared: Gauhati High Court

The Gauhati High Court, noting that the applicant had filed the requisite returns and paid all outstanding dues up to the date of cancellation, directed the revival of the GST registration that had been cancelled by the tax authorities.

The Court, the right to carry on business cannot be curtailed mechanically without considering post-cancellation compliance.

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Mr. Justice Kardak Ete heard the case where the applicant, Smti Gichak Daniam, contested the communication dated 21.10.2022 issued by the Superintendent of Taxes, Itanagar Zone-II, cancelling her GST registration under the Arunachal Pradesh GST Act, 2017.

For non-filing of returns, the applicant, a registered proprietor of M/s Gabharu Infracon Private Limited, received an SCN in September 2022 and was asked to answer within 30 days. Though without awaiting the additional explanation, the respondent authority cancelled the registration w.e.f 13.09.2022.

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The state said that the applicant does not furnish any returns till the date of cancellation, the applicant mentioned that all returns have been furnished and dues filed as per Rule 23 of the CGST Rules, 2017.

The applicant’s counsel relied on the precedent set by W.G. Resorts (Assam) Pvt. Ltd. v. Union of India, where the same relief was granted.

Applicant complied with the norms, along with filing the required returns and clearing outstanding dues up to the date of cancellation. As per that, the court asked the respondent authorities to restore the GST registration.

Within 25 days, it ordered that the revocation of the cancellation be performed from the ruling date. Also, the authorities must notify the applicant of any outstanding regulatory dues to ease the GST return filing, if needed.

The court said that the restoration advantage shall be within the full payment of all dues, along with those obtained before the registration cancellation.