GST Registration Restored: Uttarakhand High Court Allows Tour Agency to Reapply After Tax Default

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Case Name

M/s Corbett Yatra Tour And Travels vs. Commissioner Center Goods And Service Tax Dehradun & Another (High Court of Uttarakhand at Nainital)

Writ Petition (M/S) No. 2386 of 2024

Date: 25th September 2024

Key Takeaways

• GST registration can be restored if the taxpayer is willing to clear all outstanding dues and file pending returns, even after cancellation for non-compliance.
• The Court followed its earlier decision in WPMS No. 2285 of 2024, showing consistency in handling similar GST registration cancellation cases.
• The process for revocation is governed by Section 30(2) of the CGST Act, 2017.
• The authorities are directed to act promptly: the taxpayer must apply within two weeks, and the department must decide within four weeks.

Issue

Can a taxpayer whose GST registration was cancelled for non-filing of returns have the cancellation revoked if they are now willing to pay all dues and file the pending returns?

Facts

• Who: M/s Corbett Yatra Tour & Travels, a proprietorship travel agency registered under the CGST Act, 2017.
• What happened: The agency’s GST registration was cancelled by the Superintendent, CGST, on 11.09.2023, due to non-filing of GST returns for six consecutive months.
• Why: The agency failed to comply with the statutory requirement to file GST returns.
• What did they do: The agency approached the High Court, stating they are now ready to pay all outstanding taxes, interest, and penalties, and requested the cancellation order be quashed so they can continue their business.

Arguments

Petitioner (M/s Corbett Yatra Tour & Travels)

• Admitted the default in filing GST returns.
• Expressed readiness to pay all outstanding taxes, interest, and late fees.
• Sought permission to apply for revocation of the cancellation under Section 30 of the SGST Act, 2017.
• Cited a similar case (WPMS No. 2285 of 2024) where the Court allowed such relief.

Respondents (CGST Authorities)

• Did not oppose the petitioner’s request.
• Agreed that the matter is covered by the earlier decision in WPMS No. 2285 of 2024.

Key Legal Precedents

• WPMS No. 2285 of 2024: The Court had previously allowed a similar petition, permitting the taxpayer to apply for revocation of GST registration cancellation upon payment of dues and filing of returns.
• Section 30(2) of the CGST Act, 2017: This section allows a taxpayer to apply for revocation of cancellation of registration, subject to conditions such as filing pending returns and payment of dues.

Judgement

• The Court accepted the petitioner’s request, noting the consensus between both parties and the precedent set in WPMS No. 2285 of 2024.
• The petitioner is allowed to apply for revocation of the cancellation order under Section 30(2) of the CGST Act, 2017 within two weeks.
• The application must be accompanied by all pending GST returns and payment of all outstanding taxes and dues.
• The competent authority is directed to consider and decide the application within four weeks of its submission, as per law.
• The writ petition and any pending applications were disposed of accordingly.

FAQs

Q1: What was the main issue in this case?

A: Whether a taxpayer whose GST registration was cancelled for non-filing of returns can have the cancellation revoked if they are now willing to pay all dues and file the pending returns.

Q2: What did the Court decide?

A: The Court allowed the taxpayer to apply for revocation of the cancellation under Section 30(2) of the CGST Act, 2017, provided all dues and returns are submitted within two weeks.

Q3: What is Section 30(2) of the CGST Act, 2017?

A: It is the legal provision that allows a taxpayer to apply for revocation of cancellation of GST registration, subject to certain conditions.

Q4: What happens after the application is filed?

A: The competent authority must consider and decide the application within four weeks.

Q5: Does this case set a precedent?

A: Yes, it follows and reinforces the approach taken in WPMS No. 2285 of 2024, showing that courts may allow restoration of GST registration if the taxpayer is willing to comply with all requirements.