Mohd. Shahzar Vs State of Madhya Pradesh And Others (Madhya Pradesh High Court)
In the case of Mohd. Shahzar vs. State of Madhya Pradesh & Others, the Madhya Pradesh High Court addressed the cancellation of the petitioner’s GST registration. The petitioner, a proprietor of a business in Gwalior, cited adverse family circumstances as the reason for failing to file GST returns for the financial year 2022-23. The authorities initially issued show cause notices, followed by the cancellation of the registration in August 2023. An appeal against the cancellation was later dismissed in February 2024, prompting the petitioner to approach the High Court. He contended that he was not given adequate hearing opportunities to explain his reasons but expressed his willingness to file all pending returns and comply with penalties to reinstate his business operations.
The respondents argued that the petitioner was given sufficient opportunities under the GST Act and Rules, including hearings and notice issuance. However, the Court noted that the petitioner’s intention to return to compliance and contribute to the formal economy aligned with the department’s revenue interests.
The High Court set aside the orders canceling the registration and rejecting the appeal. It directed the petitioner to file all pending GST returns for the relevant period and pay a penalty of ₹50,000 as a condition for revocation. The authorities were instructed to consider the revocation application upon compliance. This decision underscores the judiciary’s approach to balancing regulatory enforcement with the need to support taxpayers in adverse situations, ensuring they rejoin the formal tax system while meeting their legal obligations.
