Allahabad HC Directs GST Dept to Renew License Post Dues Payment

Sai Carriers Vs State of U.P. (Allahabad High Court)
In the case of Sai Carriers Vs State of U.P., the Allahabad High Court addressed the cancellation of the petitioner’s GST license due to unpaid taxes. The GST license was revoked by the Assistant Commissioner, State Tax, on 26.08.2023, a decision upheld by the appellate authority on 20.07.2024, despite the petitioner submitting returns and paying the due tax but not the interest. After these rulings, Sai Carriers paid both the outstanding tax and interest. The petitioner requested the court to direct the GST department to renew the canceled license and expressed readiness to pay any additional dues within seven days if communicated. The court, considering the compliance, instructed the GST department to take steps to reinstate the GST license within ten days of the order’s communication. If any further payments were required, they must be communicated to the petitioner, who agreed to settle them promptly. The case was disposed of with these directions.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Shri Pranjal Shukla, learned counsel for the petitioner, as well as Mr. Sanjay Sharin, Additional Chief Standing Counsel, representing the respondent-State Authorities.
2. This petition under Article 226 of the Constitution of India has been Filed, impugning the order dated 26.08.2023 passed by the Assistant Commissioner, State Tax, Sector-5, Lucknow as well as the order dated 20.07.2024 passed by the Additional Commissioner, Grade-2 (Appeal), State Tax, Lucknow in Appeal No. D 123 of 2024, copies of which are contained in Annexure Nos. 3 and 6 to the petition respectively.
3. Vide the impugned order dated 26.08.2023, the Assistant Commissioner, State Tax, Sector-5, Lucknow cancelled the GST Licence of the petitioner on the ground that the petitioner had not paid tax due.
4. Against the aforesaid order dated 26.08.2023, the petitioner had filed the appeal. The appellate Authority, however, vide impugned order dated 20.07.2024 has rejected the appeal on the ground that the petitioner paid the interest, though he has submitted the returns, and paid tax due.
5. Learned counsel for the petitioner submits that after the impugned order was passed by the appellate Authority, the petitioner has paid not only the tax amount, but the interest also. In view thereof, learned counsel for the petitioner submits the the respondent no. 3 may be directed to revenue the GST Licence of the petitioner. It is also submitted that the petitioner is ready to pay any other amount, if it is communicated to him within seven days from the date of communication of this order.
6. Considering the submission advanced by the learned counsel for the petitioner, on the basis of instructions, that the petitioner had filed returns, and paid the tax as well as interest, the respondent no. 3 is directed to take steps for renewing the GST Licence of the petitioner within a period of ten days from the date of communication of this order, and if any other amount is due, the petitioner should be communicated the same, which the petitioner shall pay within a period of seven days from its communication.
7. DISPOSED OF.