Ms Excel Enterprises vs. Commissioner State Goods And Services Tax Commissionerate
Facts
The petitioner, challenging the cancellation of their GST registration by respondent no. 2 via an order dated 07.10.2022, appeared before the High Court. The petitioner's counsel stated that the registration was cancelled due to default in GST payments. The petitioner expressed willingness to deposit all outstanding dues and make a representation to the authorities for revocation of the cancellation order. The State/respondents, through their counsel, did not dispute that the issue was covered by a previous judgment of the Court dated 09.11.2023, in WPMS No. 3154 of 2023. They agreed that if the petitioner deposited all dues and penalties and submitted a representation, it would be considered by the department.
Held
The Court took on record the statement made by the learned counsel for the respondents/State. The Court directed that the petitioner is at liberty to make all the necessary deposits, including tax and penalty, and to submit a representation to the respondent-authorities within one week. Following this, the concerned respondent authority shall decide the representation within two weeks by passing a reasoned and speaking order. Subject to these directions, the writ petition was disposed of. The Court's decision hinges on the principle that a taxpayer defaulting on GST payments can seek revocation of registration cancellation by clearing dues and penalties and making a proper representation, which the authorities must consider and decide reasonably.
Key Issues
1. Whether the cancellation of GST registration for default in payment of tax is amenable to revocation upon deposit of dues and penalties, and submission of a representation, in light of previous High Court pronouncements? The petitioner argued that due to default in GST payment, their registration was cancelled, and they were ready to deposit all dues and make a representation for revocation. The revenue/State did not dispute the petitioner's contention and acknowledged that the issue was covered by a prior judgment of the Court. They submitted that if the petitioner deposited all dues along with penalty and made a representation, it would be considered by the department.
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SL. No Date Office Notes, reports, orders or proceedings or directions and Registrar’s order with Signatures COURT’S OR JUDGES’S ORDERS
2024
WPMS No. 55 of 2024 Hon’ble Rakesh Thapliyal, J.
Mr. Mahavir Kohli, learned counsel for the petitioner and Mr. Mohit Maulekhi, learned Brief Holder for the State.
Heard learned counsel for the parties.
Petitioner is challenging the order dated 07.10.2022 issued by respondent no. 2 for cancellation of the GST registration.
Learned counsel for the petitioner would submit that due to default in making payment of Goods and Services Tax, his registration has been cancelled. The petitioner is ready and willing to deposit all the dues and make a representation to the authorities concerned so that his cancellation order may be revoked.
Mr. Mohit Maulekhi, learned counsel appearing for the State/respondents has not disputed that the issue is covered by the judgment rendered by this Court on 09.11.2023, passed in WPMS No. 3154 of 2023. He would submit that if the petitioner deposits all the dues along with penalty and makes a representation, the same shall be considered by the department
The judgment continues below.
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