EN 
The Karnataka High Court recently issued a ruling permitting the Superintendent of Central Tax to pass orders for revoking the cancellation of GST registration on filing returns. The ruling came in response to a writ petition filed by a taxpayer who had challenged the cancellation of their GST registration by the tax authorities.
According to the petitioner, their GST registration was cancelled due to non-filing of returns for a period of more than six months. However, the petitioner claimed that they had filed all the pending returns and paid the tax dues before the cancellation of their registration.
The petitioner argued that the tax authorities should have considered their returns before cancelling their GST registration, and that the cancellation was therefore unjustified. They further argued that the Superintendent of Central Tax did not have the power to pass an order for revocation of the cancellation of GST registration, and that only the GST Council had the power to do so.
The High Court, however, rejected the petitioner's arguments and upheld the power of the Superintendent of Central Tax to pass an order for revocation of the cancellation of GST registration. The court held that the power of the GST Council to order revocation of the cancellation of GST registration was not exclusive, and that the Superintendent of Central Tax could also pass such an order.
The court further observed that the cancellation of GST registration should not be a punishment, but should be a mechanism for ensuring tax compliance. Therefore, if a taxpayer files all the pending returns and pays the tax dues before the cancellation of their GST registration, then the cancellation should be revoked.
The ruling is expected to have significant implications for taxpayers who have had their GST registrations cancelled due to non-filing of returns. The ruling clarifies that the Superintendent of Central Tax has the power to revoke the cancellation of GST registration if the taxpayer files all the pending returns and pays the tax dues before the cancellation. This will provide relief to many taxpayers who may have lost their GST registration due to administrative errors or other reasons beyond their control.
For any further doubt on matters related to GST, feel free to contact ASC Group
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