2025 (3) TMI 1025 - HC - GST

Cancellation of registration of the Petitioner under the CGST Act 2017/MGST Act 2017 - failure to file returns for more than six months - Petitioner is willing to pay all dues together with interest - HELD THAT - Considering the peculiar facts of this case and the fair concession made by the learned Addl. GP we direct the Respondents to compute within a period of two weeks the dues if any payable by the Petitioner. The amount so determined must be communicated to the Petitioner within a period of one week thereafter and upon the Petitioner paying the said amount the Petitioner s registration be restored. It is needless to clarify that the registration should be restored to facilitate the payment of the dues calculated by the Respondents and within 48 hours of restoration of the registration the Petitioner must pay the demanded dues. If this is not done then the registration can be cancelled without the necessity of any notice to the Petitioner. In addition to what is stated herein above the Petitioner shall pay Rs. 40 000/- as costs to The High Court Employees Medical Welfare Fund at Mumbai within a period of one week from today. Petition disposed off.

Summary

**Summary:**In the case before the Bombay High Court, the Petitioner sought to overturn an order dated 21st September 2022, which canceled their GST registration under the CGST Act, 2017/MGST Act, 2017, due to non-filing of returns for over six months. The Petitioner attributed this failure to a "severe financial crunch" caused by delayed customer payments, asserting it as a "bona fide and genuine reason." The Petitioner expressed willingness to settle outstanding dues and interest.The Respondents, represented by the learned Addl. GP, agreed not to oppose the restoration of registration if dues were paid. The Court, considering the "peculiar facts" and the Respondents' concession, directed the Respondents to calculate the dues within two weeks and inform the Petitioner within one week thereafter. Upon payment, the registration would be restored, with the Petitioner required to pay the dues within 48 hours of restoration. Non-compliance would result in cancellation without notice.Additionally, the Petitioner was ordered to pay Rs. 40,000 as costs to "The High Court Employees Medical Welfare Fund at Mumbai" within a week, providing proof to the Respondents and the Court registry. Compliance with these terms would result in setting aside the impugned order and making the Rule absolute. Failure to pay costs would lead to dismissal of the Writ Petition. The order was to be digitally signed and acted upon via fax or email.