M/S Ramshrayashil Constructions PVT.LTD vs. Union Of INDIA Through The Secretary, Ministry Of Finance, Government Of INDIA

Held

The Court disposed of the petition with specific directions. The petitioner was directed to pay the admitted dues of Rs. 27,44,107.50, after adjusting the Rs. 5,13,958 already paid, within two months. The petitioner was also required to file returns for assessment years 2024-25 and 2025-26 within one month, potentially in physical form. The respondents were to assess these returns and issue an assessment order with any demand within one month thereafter. Upon payment of the demanded amounts by the petitioner, the respondents were to restore the GST registration within two weeks. The Court clarified that if the petitioner failed to pay the admitted amounts within two months, the respondents would not be obligated to assess the returns but could pursue recovery under the law. The petitioner's right to question any demand in accordance with law was preserved.

Facts

The petitioner, M/s Ram Ramshrayashil Constructions Pvt. Ltd., challenged the cancellation of its GST registration. The cancellation was due to the failure to file GST returns for the assessment years 2024-25 and 2025-26. The petitioner sought restoration of its registration, stating that its business would face severe difficulties without it. The petitioner proposed to file the pending returns and pay the GST dues. The Court had previously ordered the petitioner to file an affidavit with draft returns and amounts payable. The petitioner subsequently filed a supplementary affidavit admitting a GST liability of approximately Rs. 27,44,107.50, with Rs. 5,13,958 claimed as paid. The respondents indicated that they would consider restoring the registration if all dues, including interest and penalty, were paid.

Key Issues

1. Whether the petitioner's GST registration, cancelled for non-filing of returns for assessment years 2024-25 and 2025-26, should be restored upon the petitioner's undertaking to file pending returns and pay admitted dues, interest, and penalties? Petitioner's contention: The petitioner argued that the cancellation of registration was equivalent to civil death for its business and sought restoration. It was willing to file all pending returns and discharge its tax liabilities, including interest and late fees, upon registration restoration. The petitioner relied on a previous order in W.P.(T) No. 6112 of 2026, where restoration was granted upon payment of dues within two weeks. Revenue's contention: The respondents, represented by Mr. P.A.S. Pati, stated that the petitioner's statement of liability was tentative as no assessment had been made. However, they submitted that the department would not object to restoring the registration if all dues, including interest and penalty, were paid.