HC Directs GST Authorities to Reconsider GST Revocation Application Subject to Tax Dues Payment

The Uttarakhand High Court disposed of a writ petition filed by R.B. Enterprises by remanding the GST cancellation case back to the tax authorities with directions to freshly consider the application for revocation if the petitioner pays all its outstanding dues, along with penalties and interest.

The GST authorities had cancelled the GST registration of the petitioner through an order dated June 30, 2025, for non-filing of tax returns for six continuous months. Thereafter, when the petitioner sought GST revocation, the same application was rejected through another order dated August 20, 2025, on a completely different ground; the tax authorities had noted discrepancies in GSTR-3B and GSTR-2A.

During the hearing before the Uttarakhand High Court, the petitioner claimed that it is willing to pay all the applicable dues, penalties and interest, along with filing all defaulted returns. The petitioner prays that the court direct the tax authorities to consider its application for GST revocation.

The high court noted that the appellate authority had already dismissed the petitioner’s appeal previously through an order dated February 16, 2026, and now the same order had also been challenged before it; however, the appellate order was not issued on the merits of the case; it was just on the grounds of limitation.

Considering the aforementioned findings, the court concluded that when the petitioner is willing to pay the entire tax amount, along with interest and penalty, and also to file all defaulted returns, and the revocation application has been rejected on a new ground, the petitioner should be given a second chance.

In conclusion, the high court remanded the case back to the tax authorities with directions to freshly consider the petitioner’s application for revocation if it furnishes all returns and deposits the entire amount of tax, along with penalty and interest, within two weeks from the issuance of the present order, i.e., from May 25, 2026. Once the petitioner files a GST revocation application afresh after fulfilling all the aforesaid conditions, the tax authorities must consider the application within four weeks from the date of filing of the representation. The writ petition was disposed of with these directions.

The court held that, “Accordingly, the writ petition is disposed of by providing that, in case the petitioner furnishes 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.”