GST Reg. Cancellation can be Revoked when Dealer agrees to Clear Dues: J&K & Ladakh HC Directs Immediate Restoration [Read Order]
The Court ordered that the registration be restored immediately upon completion of requisite formalities and mandated that the petitioner file all pending returns and deposit the tax, penalty, and interest within seven days.
GST-Registration-cancellation-taxscan
GST-Registration-cancellation-taxscan
The Jammu & Kashmir and Ladakh High Court has held that cancellation of GST ( Goods and Services Tax ) registration can be revoked when the dealer undertakes to clear all statutory dues, directing immediate restoration of the registration subject to compliance.
The petitioner, GNT Constructions Company’s registration had been cancelled by the State Tax Officer, Kupwara, on 21 August 2024 after the petitioner failed to reply to a show-cause notice issued on 7 August 2024.
The appeal filed under Section 107(1) of the GST Act was subsequently dismissed by the Appellate Authority on 4 November 2025 as being barred by limitation, leading the petitioner to approach the High Court under Article 226 of the Constitution.
The Court noted that similar matters had been decided earlier, where registration was directed to be restored upon the dealer’s undertaking to file all pending returns and deposit the tax, penalty, and interest payable under the GST Act.
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It recorded that in previous cases decided on 1 April 2024 and 29 April 2024, the authorities had agreed to restore registration once the defaulting dealer complied with the legal requirements. In addition, the Bench observed that the present case was identical in circumstances and merited the same relief.
The Division Bench of Justice Sanjeev Kumar and Justice Sanjay Parihar directed the petitioner to approach the competent authority within seven days for restoration of the GST registration.
The Court ordered that the registration be restored immediately upon completion of requisite formalities and mandated that the petitioner file all pending returns and deposit the tax, penalty, and interest within seven days.
It was clarified that failure to comply within the prescribed time would render the order inoperative. The Bench further noted that, in view of the nature of relief granted and the parity with earlier cases, it was unnecessary to examine the legal issues raised by the respondents.
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