GST registration cancellation order set aside conditionally, subject to deposit of outstanding dues and fresh application for revival

Case Details

Case Title: Global Manpower Solutions Awagarh Compound, Mallital, Nainital v. State Tax Officer, State GST, Nainital
Court: High Court of Uttarakhand, Nainital
Petition No.: Writ Petition (M/S) No. 3443 of 2024
Date of Judgment: 19 December 2024
Category of Dispute: GST Registration Cancellation
Relevant Sections: Section 29(2) CGST Act, Rule 21A CGST Rules (cancellation of registration), Article 226 Constitution of India

Facts (Para 1–2)

The petitioner, Global Manpower Solutions, challenged the cancellation of its GST registration. The State Tax Officer issued a show cause notice on 12.04.2022 and subsequently an order of cancellation dated 03.09.2022. The petitioner sought relief under Article 226 of the Constitution, praying for quashing of both the show cause notice and cancellation order, and for revival of its GST registration.

Questions Before the Court

1. Whether the cancellation order dated 03.09.2022 passed under Section 29(2) CGST Act could be quashed in writ jurisdiction.

2. Whether revival of registration could be directed upon compliance with tax dues.

Observations (Para 3)

The Court, considering submissions from both sides, noted that the dispute essentially revolved around non-payment of dues. Rather than entering into a prolonged adjudication on procedural defects of notice, the Court emphasized that revival of registration should be allowed if the taxpayer discharges outstanding obligations.

The Court clarified that if the petitioner deposits the entire outstanding tax along with interest and penalty and applies for revival within one week, the Competent Authority shall consider the application on merits and pass orders within another one week.

Judgment (Para 3, Final Order)

The writ petition was disposed of with directions:

• Petitioner must deposit full outstanding dues (tax, interest, penalty).

• Petitioner must file an application for revival within one week.

• Competent Authority must decide the application within one week from submission.

Thus, the cancellation stood effectively set aside conditionally, ensuring both protection of revenue and restoration of business continuity.

Case Law Reference Table

Between Fine Lines

For businesses, this judgment signals that GST registration cancellation is not necessarily final. Courts are inclined to allow revival if taxpayers are ready to clear dues promptly. Timely deposit and application can save businesses from prolonged litigation and protect continuity of operations.

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