Retrospective Cancellation of GST Registration: J&K HC directs Dept to restore GSTIN subject to Application from Taxpayer [Read Order]

The Jammu & Kashmir and Ladakh High Court has quashed the retrospective cancellation of Goods and Services Tax (GST) registration of a petitioner, directing the competent authority to restore his GST number upon receipt of a formal application and completion of requisite formalities.

A two-judge bench comprising Justices Sanjay Parihar and Sanjeev Kumar disposed of the writ petition, observing that the petitioner’s case was squarely covered by a prior ruling in Sheikh Mohammad Yousuf vs. Union Territory of J&K and Ors. dated July 26, 2024. Counsel for the petitioner, Mr. Zaffar Qadri, had argued that the petitioner’s GST registration had been retrospectively cancelled without adequate opportunity for compliance, in violation of principles of natural justice.

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After hearing submissions and perusing the record, the Court agreed that the Yousuf judgment, which had set aside retrospective cancellations in similar circumstances, applied equally to the present petitioner’s challenge.

It was stated that, “We are of the considered view that the Judgment passed in Sheikh Mohammad Yousuf’s case covers to the present petitioner as well.”

The High Court, therefore, directed the petitioner to approach the GST registration authority within two weeks of the judgment. Upon receiving his application, the authority is mandated to restore his GST number “immediately, subject to completion of all requisite formalities.”

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In a further stipulation, the petitioner must file any outstanding GST returns and deposit the taxes due, along with interest and penalty, within two weeks of the restoration of his registration. The Court made clear that failure to comply within the stipulated time would render the order inoperative.

To Read the full text of the Order CLICK HERE

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