The Uttarakhand High Court has quashed the cancellation of GST registration of a local restaurant, observing that the Goods and Services Tax (GST) regime remains “technically complex” for common citizens who are more focused on sustaining their daily business operations.
The division bench of Chief Justice G Narendar and Justice Alok Mahra passed the order earlier this week in response to a petition filed by M/s River View Restaurant, located in Bageshwar district. The court permitted the restaurant to submit a fresh application for restoration of its GST registration and instructed the state GST department to process it within three weeks of filing.
Highlighting the practical difficulties faced by small businesses in navigating the GST system, the court noted, “GST is still in its nascent stage, and many of its provisions are beyond the understanding of an average person.” It emphasized that procedural delays should not override the broader implications of business continuity and revenue loss to the exchequer.
The respondent authorities — including the Commissioner and Joint Commissioner of State GST — argued that the petitioner had an opportunity to file a revocation application under Section 30 of the Central GST Act, 2017. This provision allows a taxpayer to seek revocation of a cancellation order within 30 days, extendable up to 90 days, provided all dues and returns are cleared.
However, the petitioner’s counsel acknowledged that no such application was made within the stipulated time frame.
Despite this lapse, the High Court took a sympathetic view. “We feel that the limitation should not take precedence over reconsideration of the cancellation order. Considering the larger objective involving livelihood and revenue interests, the delay in invoking the provision of the Act is required to be, and is hereby, condoned,” the bench ruled.
Case Details
Case Title: M/s River View Restaurant Versus State of Uttarakhand and others
Case No.: WRIT PETITION (M/B) NO. 560 OF 2025
Date: 22/07/2025
Counsel For Petitioner: Yogesh Kumar Pacholia
Counsel For Respondent: Puja Banga
