Suraj Singh vs. Commissioner State Goods And Services Tax

Facts

The petitioner, M/s Suraj Singh, filed a writ petition challenging an order dated 18.08.2025, passed by the respondents (Commissioner State Goods and Services Tax and Another), cancelling their GST registration due to default in payment of GST. The petitioner contended that they have since deposited all pending amounts and are willing to pay any further dues. They sought liberty to apply for revocation of the cancellation order and requested the respondents to consider such an application. The Revenue acknowledged the petitioner's submission and agreed to consider any application for revocation sympathetically, provided the petitioner demonstrates full payment of outstanding dues.

Held

The Court held that the writ petition is disposed of with liberty granted to the petitioner to move an appropriate application for revocation of the order of GST registration cancellation. This application must be accompanied by evidence demonstrating that all outstanding GST dues have been cleared. The Court directed that if such an application is filed, it shall be considered by respondent no.2 (Commissioner State Goods and Services Tax) expeditiously, preferably within four weeks from the date of filing. The reasoning is based on the petitioner's submission of having cleared dues and the Revenue's fair stance to consider the application sympathetically upon proof of payment. The ratio is that a taxpayer who rectifies defaults by clearing dues should be given an opportunity to seek revocation of GST registration cancellation, with the authorities mandated to consider such applications promptly.

Key Issues

1. Whether the petitioner should be granted liberty to apply for revocation of the order cancelling their GST registration, considering they have deposited all outstanding dues and are willing to clear any further liabilities? Petitioner's contention: The petitioner argued that they have rectified the default by depositing all pending GST amounts and are prepared to pay any additional sums demanded by the department. They sought permission to file an application for revocation of the cancellation order and requested the respondent authority to consider it favorably. Revenue's contention: The learned Standing Counsel for the Revenue fairly submitted that if the petitioner applies for revocation and provides proof of having cleared all outstanding GST amounts, the department will consider the application sympathetically.