Engineered And Innovative Pvt. Ltd. Vs State of U.P. (Allahabad High Court)
The writ petition before the Allahabad High Court challenged an appellate order dated 21.09.2023 rejecting an appeal against cancellation of GST registration. The petitioner, engaged in consultancy services and registered under GST from 24.04.2021, received a show cause notice dated 27.12.2022 proposing cancellation on the ground of non-commencement of business within six months of registration. Due to the serious illness of the Managing Director, who was suffering from tuberculosis, the petitioner failed to respond to the notice. Consequently, the Assistant Commissioner cancelled the registration solely for non-response.
An appeal against the cancellation order was filed but rejected due to a delay of 95 days under Section 107 of the U.P. GST Act. As the GST Appellate Tribunal had not been constituted in the State, the petitioner approached the High Court. Medical records were produced to substantiate the illness during the relevant period, and it was also shown that all pending GST dues, along with late fee and interest, had been paid.
The Court observed that cancellation of GST registration carries serious consequences. Considering the medical evidence explaining the delay and non-response, and noting that statutory dues had been cleared, the Court found the petitioner’s explanation satisfactory. The respondents were directed to restore the GST registration within ten days from communication of the order. The Court further directed that if any additional amount was due, the same should be communicated to the petitioner, who was required to pay it within seven days. The petition was accordingly disposed of.
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