M/S Chadda Kalash Bhandar vs. Commissioner Uttarakhand State GST Commissionerate

Held

The Court held that in cases where GST registration has been cancelled due to default in payment of taxable dues, and the petitioner is agreeable to depositing the entire outstanding amount, including any applicable penalty and interest, the registration can be considered renewed. The Court's decision was based on the consensus reached by the parties and the precedent established in a similar case. The reasoning was that providing an opportunity for the petitioner to clear their dues would resolve the grievance and regularize their GST compliance. The operative direction was that the respondent authorities would consider the petitioner's prior GST registration to be renewed within a period of three weeks from the date of deposit of the entire defaulted amount, including penalty and interest, as it stood on the date of cancellation. No issue was expressly left undecided.

Facts

The petitioner, whose GST registration number is 05AFSPC8838D1ZB, filed a writ petition challenging the cancellation of their GST registration. The cancellation was initiated under Section 29(2)(c) of the Uttarakhand GST Act, 2017, due to alleged default in payment of taxable dues to the respondent. The petitioner's counsel referred to a previous order of the High Court dated August 18, 2022, in Writ Petition (M/S) No. 1553 of 2021, which dealt with a similar situation. In that prior case, the Court had directed that if the petitioner deposited the entire defaulted amount, including penalty and interest, their cancelled GST registration would be considered renewed and revived within three weeks of the deposit. The petitioner in the present case agreed to this course of action.

Key Issues

1. Whether the GST registration of the petitioner, cancelled under Section 29(2)(c) of the Uttarakhand GST Act, 2017, for alleged default in payment of taxable dues, can be revived upon deposit of the entire defaulted amount, including penalty and interest? Petitioner's contention: The petitioner argued that their GST registration was cancelled due to non-payment of dues and sought revival of the registration. They relied on the precedent set by this Court in Writ Petition (M/S) No. 1553 of 2021, where a similar direction was issued for the revival of registration upon payment of all outstanding dues, penalties, and interest. The petitioner expressed willingness to comply with such a direction. Revenue/State's contention: The counsel for the State/respondents, after obtaining instructions, submitted that the respondent authority would consider the prior registration to be renewed if the petitioner deposits the entire defaulted amount, including penalty and interest, as it stood on the date of cancellation.