Pritam Nath Vs Union of India And 4 Ors. (Gauhati High Court)
In Pritam Nath vs. Union of India & Ors., the Gauhati High Court set aside an order canceling the petitioner’s GST registration. The petitioner, an architect, had been registered under the GST Act since 2017 but failed to file returns for six months due to personal difficulties and the COVID-19 pandemic. This led to a show cause notice on December 17, 2020, followed by an order of cancellation on January 20, 2021. The petitioner appealed the cancellation in March 2023, but the appellate authority rejected his request, prompting him to seek judicial intervention.
The court noted that the petitioner’s exclusion from the GST system would prevent the collection of statutory dues, which was against the interest of the revenue authorities. The petitioner cited similar cases where the court had ordered the restoration of GST registrations upon full payment of outstanding dues. The respondents did not dispute these precedents, leading the court to consider them while deciding the case.
Judicial precedents, including decisions in W.P(C) No. 6175/2022 and W.P(C) No. 576/2023, have established that GST registration cancellations should be revoked if the taxpayer complies with statutory payment requirements. The Supreme Court in Sundaram Finance Ltd. vs. Regional Transport Officer (2018) also underscored that administrative decisions affecting financial rights must be reasonable and fair, aligning with the principles of natural justice.
