GST Registration Revocation Allowed as Rejection Was Based on New Grounds

R B Enterprises Vs Commissioner (Uttarakhand High Court)

 The petitioner challenged the GST registration cancellation order dated 30.06.2025, the rejection of revocation dated 20.08.2025, and the appellate order dated 16.02.2026. Before the Court, the petitioner limited the prayer to seeking permission for reconsideration of revocation of GST registration, stating willingness to file all pending returns and pay tax, interest, and penalty. The Court noted that the registration was cancelled for non-filing of returns for six continuous months, whereas the revocation application was rejected on a different ground relating to mismatch between GSTR-3B and GSTR-2A. The Revenue argued that the appeal had already been dismissed. However, the Court observed that the appellate dismissal was only on limitation and not on merits. Considering the petitioner’s willingness to clear dues, the Court allowed liberty to file a fresh revocation application after filing returns and depositing tax, interest, and penalty within two weeks. The Proper Officer was directed to decide the representation within four weeks.

FULL TEXT OF THE JUDGMENT/ORDER OF UTTARAKHAND HIGH COURT

1. The petitioner has assailed the order of rejection of revocation dated 20.08.2025, and the original cancellation order dated 30.06.2025 passed by respondent no. 3, and the Order-in-Appeal dated 16.02.2026 passed by respondent no. 2, and has also prayed for a writ of mandamus commanding respondent no. 3 to consider the representation/ application for revocation of the order of cancellation of GST registration, as the petitioner is willing to furnish all defaulted returns, along with any applicable dues, penalty and interest.

2. Learned counsel for the petitioner presses only the alternative prayer for direction to the respondents to consider his representation/ application for revocation of the order of cancellation of GST registration, as the petitioner is willing to furnish all returns, deposit the applicable taxes, along with interest and penalty.

3. It is noteworthy that the order of cancellation of GST registration is on the ground of non-filing of returns for continuous six months, whereas the application for revocation of the order of cancellation of GST registration was rejected on the entirely different grounds, namely that there was difference in GSTR-3B & 2A.

4. Mr. Shobhit Saharia, learned counsel for the Revenue submits that the said prayer may not be admissible at this stage because the appeal filed by the petitioner, against the orders of respondent no. 3, has been dismissed by order dated 16.02.2026, and the said order is also under challenge in the instant writ petition.

5. Indisputably, the order of the Appellate Authority, dismissing the appeal, is not on merits, but only on the ground of limitation. As the petitioner is willing to deposit the entire tax amount, along with interest and penalty, and the revocation application has been rejected on a new ground, therefore, we are of the opinion that the petitioner be given liberty to apply for revocation afresh.

6. Accordingly, the writ petition is disposed of by providing that, in case the petitioner furnish all returns, deposits the entire amount of tax, along with penalty and interest within two weeks from today, and makes a fresh representation, the same be considered and decided by the
Proper Officer within four weeks from the date of filing of the representation.

7. All pending applications stand disposed of accordingly.