Shri Pratham Lal Chaudhary vs. State Tax Officer

Facts

The petitioner challenged an order cancelling their GST registration. The petitioner's counsel stated that the registration was cancelled due to non-payment of dues for six months. However, all outstanding dues, including penalties, have now been paid. The petitioner further argued that a similar matter was decided by this Court on August 25, 2023, in Writ Petition (M/S) No. 2309 of 2023, MS Kamal Coating Experts GSTIN Vs. Commissioner State Goods and Services Tax Commissionerate and another, and requested that the instant petition be decided in terms of that order. The learned State counsel concurred, stating the matter was squarely covered by the aforementioned order.

Held

The Court decided to dispose of the instant petition in terms of the judgment and order dated August 25, 2023, passed in Writ Petition (M/S) No. 2309 of 2023, MS Kamal Coating Experts GSTIN Vs. Commissioner State Goods and Services Tax Commissionerate and another. The reasoning appears to be that the State counsel acknowledged the matter was covered by the previous order, and the Court accepted this submission. The specific findings on the justification of cancellation or the application of principles of natural justice are not detailed in this order, as it relies entirely on the prior judgment. The operative direction is to decide the petition in terms of the earlier order. No issues were expressly left undecided.

Key Issues

1. Whether the cancellation of GST registration is justified when all outstanding dues and penalties have been paid subsequent to the cancellation, and if the Court should follow its previous order in a similar case. (Mixed question of law and fact, turning on principles of natural justice and the intent of GST legislation regarding compliance after default). Petitioner's arguments: The petitioner contended that since all dues and penalties have been paid, the cancellation of registration should be revoked. They relied on the precedent set by this Court in Writ Petition (M/S) No. 2309 of 2023, MS Kamal Coating Experts GSTIN Vs. Commissioner State Goods and Services Tax Commissionerate and another, arguing that the instant petition should be decided in the same manner. Revenue's arguments: The respondent (State) agreed with the petitioner, submitting that the matter is squarely covered by the order dated August 25, 2023, passed in the cited petition, implying that the cancellation should be reconsidered in light of the payment and the precedent.