Restoration of GST Registration Allowed Subject to Filing of Returns and Payment of Dues.

Jammu & Kashmir High Court | WP(C) No. 2765/2025 | CM(7329/2025)
Date of Order: November 10, 2025
Case:G.N.T. Constructions Company vs. Union Territory of J&K & Others
Citation: 2025 (11) TAXREPLY 15009
Coram:Hon’ble Mr. Justice Sanjeev Kumar &Hon’ble Mr. Justice Sanjay Parihar
Counsel for Petitioner: Mr. A.M. Mir & Mr. Mir Umar, Advocates
Counsel for Respondents: Mr. MohdYounis Hafiz, Assisting Counsel vice Mr. MohsinQadri, 

Background

The petitioner, G.N.T. Constructions Company, was a registered taxpayer under the Goods and Services Tax Act, 2017 (GST Act).

• On 7th August 2024, the State Tax Officer (STO), Circle Kupwara, issued a Show Cause Notice proposing cancellation of registration on account of non-compliance.
• The petitioner failed to respond, leading to the cancellation of GST registration on 21st August 2024.
• Subsequently, the petitioner filed an appeal before the Appellate Authority (State Taxes Appeals-2, Kashmir) under Section 107(1) of the GST Act.
• However, the appeal was dismissed on 4th November 2025 as time-barred, since it was filed beyond the statutory period.

With no statutory remedy left, the petitioner approached the High Court under Article 226 of the Constitution, seeking restoration of the cancelled GST registration.

Court’s Consideration

The Hon’ble Bench noted that similar petitions had previously been decided by the High Court, where GST registrations were restored conditionally.
The court referred to previous orders dated 1st April 2024 (WP(C) No.182/2024) and 29th April 2024 (WP(C) No.873/2024), where restoration was permitted subject to compliance with statutory dues.

The Government Counsel did not oppose restoration in principle, provided the taxpayer:

• Filed all pending GST returns, and
• Paid all outstanding dues, including tax, interest, and penalty.

Judgment Summary

After hearing both sides, the High Court held:

1. The petitioner may approach the competent GST authority within seven (7) days from the date of order.
2. The authority shall restore the cancelled GST registration immediately upon completion of procedural formalities.
3. The restoration shall be conditional upon:
   • Filing all pending GST returns, and
   • Paying tax, penalty, and interest within seven (7) days.
4. If the petitioner fails to comply within the stipulated period, the restoration order will automatically lapse.
5. The Court clarified that this order was fact-specific and did not decide broader legal questions relating to time-barred appeals under Section 107.

Key Legal Provisions Involved

Significance of the Judgment

1. Relief for Defaulting Taxpayers

This decision provides practical relief for taxpayers whose registrations were cancelled due to procedural lapses, especially when appeals are dismissed as time-barred. It enables genuine businesses to resume compliance instead of facing permanent exclusion.

2. Emphasis on Compliance

The Court balanced leniency with responsibility by mandating strict compliance within seven days - ensuring that relief is extended only to those willing to regularize their pending obligations.

3. Judicial Consistency

This judgment continues the pattern of pro-compliance judicial reasoning seen in prior High Court rulings, reinforcing that registration restoration is not a right, but a conditional relief based on bona fide conduct.

4. Administrative Efficiency

By directing the petitioner to approach the competent officer directly, the Court ensured expeditious disposal without unnecessary litigation or remand procedures.

Practical Implications for Taxpayers

• Businesses whose GST registrations are cancelled (for non-filing or non-payment) can seek restoration through the High Courtif appeals are time-barred.
• The Court may grant relief conditionally, provided all returns are filed and dues paid within a short period.
• Taxpayers should avoid delay and respond promptly to show cause notices to prevent such cancellations.
• Authorities are expected to restore registration promptly upon compliance, ensuring business continuity.

Conclusion

The Jammu & Kashmir High Court’s ruling in G.N.T. Constructions Company vs. Union Territory of J&K underscores a consistent judicial approach:

Relief under GST is available to compliant taxpayers, not defaulters seeking indefinite extensions.

The decision reiterates that while procedural rigidity should not stifle genuine businesses, compliance with tax obligations remains the foundation for restoration of privileges under GST law.

✍️ Author:

Dr. Muhammed Mustafa C T
Senior Tax Consultant, BRQ Associates
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