Section 30 of the CGST Act, 2017 --- Revocation of Cancellation of GST Registration —- The petitioner sought direction to the respondent/s to set aside the penalty of Rs.2,32,014/-. The court observed that the respondent passed an order dated 29.07.2020, cancelling the petitioner’s registration and the petitioner filed an application on 16.10.2020, seeking revocation of the said order. The respondent issued a SCN proposing to reject the petitioner’s application for revocation of the cancellation of the registration. The said SCN did not disclose any reason for the rejection of the petitioner’s application. The petitioner appealed against the said order before the appellate authority and succeeded. Despite this, the petitioner’s registration was not restored immediately and was restored on 22.04.2022. The controversy in the present petition is related to the levy of penalty for the late filing of the returns. The petitioner’s principal contention was that it had already complied with the requirement of filing the returns on the date when the order cancelling its registration was passed and, therefore, the said order was unsustainable.

Held that:- The Hon’ble Court directed that from the date of the petitioner filing an application for revocation of its cancellation, that is, 16.10.2020, the petitioner cannot be held responsible for not filing its returns during the period when the registration stood cancelled. Thus, for the purpose of calculating any penalty for the late filing of the returns, the period, 16.10.2020 to 22.04.2022, is liable to be excluded. Listed it on 14.04.2023.