GSTAT Restores GST Registration of Adhunik Fire Appliances from Cancellation Date:

The GSTAT observed that M/s Adhunik Fire Appliances is a proprietorship concern of Shri Deepak Mittal which was engaged in the supply of fire appliances and works contract services relating to fire-fighting equipment. Its GST registration was cancelled by the proper officer on March 3, 2024, with retrospective effect from January 3, 2024, on the ground that it had failed to furnish returns for a continuous period of six months under Section 29(2)(c) of the CGST Act, 2017.

The assessee challenged the cancellation before the first appellate authority. However, the Additional Commissioner, Grade-II (Appeal), State Tax, dismissed the appeal on December 8, 2025, observing that returns had been filed only up to June 2023 and that the assessee had failed to establish its financial difficulties or payment of outstanding tax dues.

The Tribunal first examined the limitation aspect and held that the appeal was within time. It noted that Notification No. S.O. 4220(E) dated September 17, 2025, initially prescribed June 30, 2026, as the deadline for specified taxpayer appeals. This was subsequently superseded by Notification No. S.O. 3502(E) dated June 30, 2026, which extended the deadline to July 31, 2026, for appeals against orders communicated before May 1, 2026. Since the first appellate order was communicated on December 15, 2025, the present appeal was maintainable within the notified limitation period.

On examining the legality of the cancellation proceedings, the Tribunal observed that the show cause notice dated January 3, 2024, merely stated the ground of failure to furnish returns for a continuous period of six months without specifying the relevant tax periods or their respective due dates. The cancellation order also failed to provide the necessary period-wise particulars to establish the statutory default.

The Tribunal further found that the proper officer had not provided any separate justification for making the cancellation effective retrospectively from January 3, 2024, when the actual cancellation order was passed on March 3, 2024.Considering the subsequent return-filing activity, the assessee's undertaking to complete compliance and the absence of allegations involving fraudulent registration, false invoices or misuse of input tax credit, the Tribunal held that conditional restoration was justified. It observed that continued cancellation, in the circumstances of the case, would unnecessarily prejudice the business without necessarily improving tax recovery.

Accordingly, the GSTAT allowed the appeal and set aside the first appellate order dated December 8, 2025, as well as the cancellation order dated March 3, 2024. It directed restoration of the assessee's GST registration with effect from January 3, 2024.