Vijay Gupta vs. Ut Of J And K Th Financial Commissioner Deptt Of Finance And Others

Held

The Court held that the petition could be disposed of on similar grounds as the cited case, Sheikh Mohammad Yousuf v. UT of J&K and others. The petitioner was directed to approach the competent authority for the restoration of his GST number within ten days. The competent authority was directed to restore the GST number immediately upon the petitioner completing all requisite formalities. The petitioner was further directed to file returns and deposit taxes, penalties, and interest within seven days. The Court clarified that this order would cease to operate if the petitioner failed to comply within the stipulated period. The Court also noted that this order was based on the peculiar facts and circumstances and analogy with earlier decided cases, and should not be construed as an expression of opinion on the maintainability of a writ petition under Article 226 when an alternative remedy of appeal is available.

Facts

The petitioner, Vijay Gupta, had his GST registration cancelled by the competent authority on July 18, 2024, following a show cause notice issued on December 6, 2023, to which the petitioner did not respond. The petitioner challenged this cancellation order and sought the restoration of his GST registration number to continue his business. He submitted an undertaking to deposit all outstanding taxes, penalties, and interest as per the GST Act, 2017, provided his registration is restored. The petitioner relied on a previous High Court judgment in a similar case.

Key Issues

1. Whether the petitioner's GST registration, cancelled due to non-response to a show cause notice, should be restored, considering his undertaking to deposit taxes, penalties, and interest? (Question of law and fact, turning on the principles of natural justice and the discretion of the authority under the GST Act, 2017). Petitioner's contention: The petitioner argued that his GST registration should be restored. He relied on the judgment in WP(C) No. 1061/2021, Sheikh Mohammad Yousuf v. UT of J&K and others, where a similar direction was issued to restore registration subject to an undertaking to deposit dues. The petitioner undertook to deposit all taxes, penalties, and interest till date. Revenue's contention: The judgment records no specific argument from the revenue or state respondents.