Judgment
2026:HHC:29774 IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA CWP No.11319 of 2026 Date of decision: 20.07.2026 M/s Surinder Sharma.
...Petitioner.
Versus The State of Himachal Pradesh & Ors. …Respondents.
Coram Hon’ble Mr. Justice Vivek Singh Thakur, Judge.
Hon’ble Mr. Justice Ranjan Sharma, Judge.
Whether approved for reporting?1 For the petitioner :
Mr. Goverdhan Lal Sharma, Advocate.
For the respondent(s) :
Mr. Anup Rattan, Advocate General with Mr.
Sushant Keprate, Additional Advocate General, for the respondents- State.
Vivek Singh Thakur, Judge
Petitioner has approached this Court for setting aside order dated 24.06.2025 (Annexure P-3), passed by respondent No.3, and order dated 26.05.2026 (Annexure P-1), passed by respondent No.2, whereby the GST Goods and Services Tax Registration Number of the petitioner was cancelled vide order dated 24.06.2025 (Annexure P-3), thereby debarring the petitioner from paying tax under the GST Act, and the appeal preferred by the petitioner has also been dismissed
1Whether the reporters of the local papers may be allowed to see the Judgment? Yes
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by respondent No.2 vide order dated 26.05.2026 (Annexure P-1) on the ground of limitation.
2.
Admittedly, the petitioner was in default in making payment of tax to the Department and resultantly order for cancellation of registration under Rule 22 (1) read with Sub Rule 2(A) of Rule 21(A) of the CGST Rule was issued on 24.05.2025 (Annexure P-2) and the order of cancellation of registration of petitioner was passed on 26.05.2026 (Annexure P-1).
3.
Though the appeal preferred by the petitioner under Section 107 of HPGST/CGST Act 2017 has been dismissed, but the same has not been decided on merits but has been dismissed on the ground that appeal preferred was time barred.
4.
In view of the provisions of CGST Act, once outer limit of period, which can be condoned by the authority, has been prescribed under the Act, the Appellate Authority is not competent to condone the delay beyond the one month after expiry of three months.
5.
Admittedly, petitioner has also not filed any application under Section 30 or appeal under Section 107 of CGST Act for revocation of cancellation of registration within the limitation period prescribed for that.
6.
In aforesaid background, learned counsel for the petitioner submits that the petitioner is a proprietorship firm registered in the
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name of M/s Surinder Sharma. It has been further submitted that petitioner is a Government Contractor in the State of Himachal Pradesh and petitioner is generating local employment and contributing in the development of the State and further that income source of the petitioner is its business and petitioner could not file return because of liquidity crunch and was unable to furnish the return in time. It has further been submitted that the business run by the petitioner is the main source of income and due to financial constraints, petitioner could not pay tax within time, but now petitioner has already paid tax payable before the date of cancellation of registration and petitioner is also ready to pay tax dues along with applicable interest and late fee as well as penalty, if any, leviable under the relevant provisions of the Act and Rules.
7.
It has also been submitted that cancellation order deserves to be dropped with direction to respondents for continuing the registration of GST.
8.
No reply has been filed on behalf of State to the petition rather no objection has been communicated for allowing the petition but subject to payment of all payable tax along with interest, late fee and penalty etc. as payable under the relevant Act and Rules.
9.
In aforesaid facts and circumstances, order dated 24.06.2025 (Annexure P-3), passed for cancellation of registration of
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the GST of the petitioner and order dated 26.05.2026 (Annexure P-1) passed by Additional Commissioner Grade-1 (Appeal) are set aside and the concerned authority is directed to revive the registration of the petitioner to its original status with original number, but subject to payment of entire tax payable for the relevant period along with interest, late fee and penalty leviable upon by depositing the same on or before 16.08.2026 for which necessary arrangement shall be made by the respondents by opening the portal so as to enable the petitioner to deposit the requisite amount with the department. Additional Commissioner Grade-1 (Appeal) shall quantify the amount of liability, including penalty, if any, on or before 07.08.2026.
10.
Petitioner is directed to complete all codal formalities required for depositing the arrears of the tax and also to ensure regular filing of returns as well as payment of tax in future.
With aforesaid direction, petition is disposed of. Pending application(s) if any, shall also stands disposed of.
(Vivek Singh Thakur) Judge
(Ranjan Sharma) Judge 20th July, 2026 (Pardeep)