In a recent ruling, the Allahabad High Court has directed the GST Department to take immediate steps to renew the GST license of a petitioner who had cleared all pending dues along with the applicable interest.
The assessee- petitioner, Sai Carriers filed a writ petition under Article 226 of the Constitution of India, challenging the orders passed by the Assistant Commissioner, State Tax, Lucknow, dated 26.08.2023, and the Additional Commissioner, Grade-2 (Appeal), State Tax, Lucknow, dated 20.07.2024.
The case arises when the Assistant Commissioner cancelled the petitioner’s GST license on August 26, 2023, due to non-payment of the tax dues. The petitioner subsequently filed an appeal against this order.
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However, the appellate authority, in its order dated July 20, 2024, rejected the appeal on the grounds that the petitioner had only paid the interest after submitting the required tax returns, but had initially failed to clear the tax dues.
The petitioner’s counsel argued that following the appellate authority’s decision, the petitioner promptly paid the full tax amount along with the interest. The counsel further requested that the respondent, the State Tax Department, be instructed to renew the petitioner’s GST license, noting the petitioner’s willingness to pay any additional amounts if communicated within seven days of the court’s order.
Considering these submissions, the bench of Justice Alok Mathur, based on the instructions and the petitioner’s compliance with the tax and interest payments, directed the GST Department to renew the petitioner’s GST license within ten days from the date of communication of the order.
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Further added that, if any further amounts are found to be due, the court ordered that the petitioner be informed immediately, and the petitioner must settle any such dues within seven days of receiving the communication.
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