M/S W. G. Resorts (Assam) Private Limited vs. Union Of INDIA And 3 Ors

Held

The Court held that there was no justification for keeping the matter pending. With the consent of both parties, the writ petition was disposed of. The respondents were directed to restore the GST registration of the petitioner immediately upon the petitioner filing the return and depositing the statutory dues, in accordance with the Rules. The Court further directed that respondent no. 4 shall intimate the petitioner within 10 days regarding any outstanding statutory dues payable by it, to enable the petitioner to file returns and make the necessary deposit. The reasoning was based on the petitioner's undertaking to clear all dues and the respondents' submission that revocation is possible upon compliance with Rule 23.

Facts

The petitioner, M/s W.G. Resorts (Assam) Private Limited, engaged in the hotel and resort business, obtained GST registration. However, due to reasons beyond its control, including the COVID-19 pandemic, the petitioner failed to file GST returns regularly. Consequently, the GST registration of the petitioner was cancelled by an order dated 29/12/2020. The petitioner filed a writ petition before the Gauhati High Court seeking urgent restoration of its GST registration, stating that the cancellation has seriously hampered its business activities. The Court directed the GST Standing Counsel to obtain instructions regarding immediate relief.

Key Issues

1. Whether the GST registration of the petitioner should be restored, considering the circumstances leading to its cancellation and the petitioner's willingness to comply with statutory requirements? The petitioner argued that the cancellation of its GST registration has severely impacted its business operations and sought an urgent order for its restoration. The petitioner also indicated its readiness to deposit any outstanding dues and file up-to-date returns. The respondents (Union of India and GST authorities) submitted that the cancellation of GST registration can be revoked immediately if the petitioner files up-to-date returns and pays the due tax amount along with other statutory dues as per Rule 23 of the CGST Rules, 2017. They stated that the petitioner has already deposited all necessary dues, and if any further amount is payable, it will be paid without delay.