Certain Aspect of GST Beyond Understanding of Common Man: Uttarakhand HC Allows Revocation of Cancelled Registration Despite Limitation Issues [Read Order]

The Division Bench comprising Chief Justice Mr. G. Narendar and Justice Alok Mahra passed the judgment, observing that the complexities of the GST law often remain beyond the grasp of the common man whose priority remains the sustenance of his day-to-day business.

“In view of the enforcement of the Act being at the initial stage and various typical aspects of the Act being a little beyond the understanding of a common man, whose prime focus is on running his day to day business, we feel that the limitation should not take precedence for reconsideration of the order of cancellation.,” said the court while pronouncing the judgment.

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The petitioner, whose GST registration had been cancelled, approached the Court challenging the order on the ground of livelihood disruption. The State defended the cancellation, pointing to the availability of an alternative statutory remedy under Section 30 of the CGST Act, which permits a registered person to seek revocation of cancellation within 90 days.

The petitioner's failure to submit the revocation application within the allotted time was acknowledged by the court. However, it took a compassionate position, stating that the GST Act, which is still in the early phases of actual implementation, is filled with procedural difficulties that can be difficult for the typical business owner to understand.

Writing for the Bench, CJ G. Narendar noted that the interpretation and implementation of procedural legislation must be based on factors about livelihood and the interests of the State in terms of revenue.

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The Court pointed out that the right to conduct business is a basic right under Article 19 of the Constitution and cannot be denied for lack of procedural compliance alone, saying that "the limitation should not take precedence for reconsideration of the order of cancellation."

Accordingly, the Court condoned the delay in filing the revocation application under Section 30 and directed that if such an application is filed within three weeks, along with the pending GST returns up to the date of cancellation, the competent authority must consider and decide it within three weeks thereafter.

The Court also set aside the appellate order dated 13th August 2024 and disposed of the petition while underscoring that undue technicalities must not impede legitimate business operations, especially where revenue loss to the State is also at stake.

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