GST Registration revocation right of taxpayer cannot be denied on the ground that there is no such provision on the GST Portal: Says High Court

Facts of Case

1. Petitioner GST Registration was cancelled for non filing of GST Returns.

2. A show cause notice was uploaded on the GST Portal granting seven days time to the petitioner.

3. It is stated that during this period of seven days, the petitioner never visited the portal and, therefore, was not able to reply to the show cause notice. As a consequence vide order dated 02.09.2019, the GST registration of the petitioner was cancelled.

4. The order dated 02.09.2019, has been set aside in appeal by the Additional Commissioner. The appellate order restored petitioner's GST registration with effect from 02.09.2019.

5. The petitioner is aggrieved as this order has not been implemented on the GST Portal and the portal insofar as the petitioner is concerned is inactive. 

Arguments by Revenue

That the petitioner is required to furnish details of old returns, tax, interest or penal interest along with his revocation application, which has not been done.

The contention therefore, is that there can be no manual restoration of the GST registration and, therefore, the writ petitioner is liable to be dismissed.

It is also the import of the counter affidavit that the petitioner wrongly assailed the registration cancellation before the Additional Commissioner without applying for its revocation on the portal.

Held by High Court

In case, the submissions of learned counsel for the respondents are accepted, the same in our considered opinion, will amount to travesty of justice. The contention that there is no provision of restoration of a GST registration, once it has been cancelled borders on the absurd. In case, no provision for its restoration has been made in the software, the same is not the fault of the petitioner and it is for the department and the respondents to make provisions for the same in the software and on the GST Portal. Merely because such provision has not been made, the petitioner cannot be made to suffer and non compliance of an appellate order, passed by a competent appellate authority cannot be accepted or permitted on the plea raised in the counter affidavit or during the course of arguments.

Accordingly, the writ petition is liable to be and is hereby, allowed. The respondents are directed to restore petitioner's GST registration on the GST Portal, forthwith not later than ten days from the date a copy of this order is filed before them.

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