GST Return Filed and Paid Outstanding Dues Till date of GST Cancellation : Gauhati HC Direct to Revoke Cancellation [Read Order]
The Court made it clear that the benefit of restoration would be subject to full payment of all dues, including those accrued prior to the cancellation of the registration.
GST returns
GST returns
The Gauhati High Court has directed the revival of GST ( Goods and Services Tax ) registration cancelled by tax authorities, observing that the petitioner had filed the requisite returns and paid all outstanding dues up to the date of cancellation.
The Court observed that the right to carry on business cannot be curtailed mechanically without considering post-cancellation compliance.
The case was heard by Mr. Justice Kardak Ete, where the petitioner, Smti Gichak Daniam, challenged 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.
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The petitioner, a registered proprietor of M/s Gabharu Infracon Private Limited, received a show-cause notice in September 2022 for non-filing of returns and was directed to respond within 30 days. However, without awaiting further explanation, the respondent authority cancelled the registration with retrospective effect from 13.09.2022.
While the state argued that the petitioner had not filed any returns till the date of cancellation, the petitioner clarified that all returns had since been filed and dues paid in accordance with Rule 23 of the CGST Rules, 2017.
The counsel for the petitioner also relied on the precedent set by W.G. Resorts (Assam) Pvt. Ltd. v. Union of India, where similar relief was granted.
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The Court observed that the petitioner had complied with requirements, including filing the necessary returns and clearing outstanding dues up to the date of cancellation. Accordingly, the Court directed the respondent authorities to restore the GST registration.
It ordered that the revocation of the cancellation be carried out within 25 days from the date of the judgment. Additionally, the authorities were instructed to inform the petitioner of any remaining statutory dues to facilitate the filing of returns, if required.
The Court made it clear that the benefit of restoration would be subject to full payment of all dues, including those accrued prior to the cancellation of the registration.
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