Order Date – 11 October 2023

Parties: M/S Ennkay Timbers And Another Vs State Of U.P. And 2 Others

Facts –

• The Petitioner, M/S Ennkay Timbers And Another, could not file the GST returns for a consecutive period of six months, to which a show cause notice was issued against the petitioner firm proposing to cancel the GST registration.
• The petitioner replied to the SCN that the petitioner was mentally exhausted after two losses in his family. Not being satisfied, the registration of petitioner’s firm was cancelled.

Issue – 

• Whether the cancellation of GST registration is proper and valid?

Order – 

• The Single Bench of Hon’ble High Court observed that the petitioner has failed to file the returns is due to unavoidable circumstances and they showed their willingness to deposit the entire dues along with interest.
• The Tribunal relied on the decision of The Kerala High Court in the case of Pazhayidom Food Ventures wherein it was held that “since the petitioner is not disputing his liability, and wishes to put a quietus to the matter, I deem it appropriate to direct the respondent to accept the belated return filed by the petitioner.”
• Hence the respondents are directed to restore the registration of petitioner and the petitioner is directed to deposit dues after restoration of registration. The writ petition allowed.