GST Registration to Be Restored as Assessee Deposited Amount to Comply with Rule 86B Requirements | HC
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- Last Updated on 13 November, 2024
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Case Details: Ujjwal Garg vs. Commissioner, Department of Trade and Taxes - [2024] 168 taxmann.com 50 (Delhi)
Judiciary and Counsel Details
- Vibhu Bakhru & Sachin Datta, JJ.
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Bhwesh Bhola & Sahil Mongia, Advs. for the Petitioner.
Facts of the Case
The petitioner was registered under GST and GST department issued Show Cause Notice proposing to cancel the petitioner’s GST registration on the ground that it had violated Rule 86B by using electronic credit ledger to discharge his liability towards output tax in excess of 99% of tax liability.
The petitioner filed a writ petition and claimed that suspension of petitioner’s GST registration was due to non-compliance with Rule 86B of CGST Rules, 2017 and the petitioner had subsequently deposited a sum of Rs.80,000/- to comply with requirement, post issuance of show cause notice.
High Court Held
The High Court noted that the petitioner had not complied with Rule 86B of the CGST Rules, which in effect stood remedied by deposit of the amount. The Court also observed that it is necessary to bear in mind that suspension of a taxpayer’s GST registration has wide adverse ramifications for the business of the taxpayer and such an action can be taken only after due consideration and held that the suspension of GST registration would not continue after deposit of required amount and it must be restored forthwith.
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