{"id":3253,"date":"2025-03-28T19:04:52","date_gmt":"2025-03-28T13:34:52","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=3253"},"modified":"2025-03-28T19:04:52","modified_gmt":"2025-03-28T13:34:52","slug":"department-must-accept-payment-of-tax-interest-and-penalty-after-gst-registration-cancellation-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/department-must-accept-payment-of-tax-interest-and-penalty-after-gst-registration-cancellation-hc","title":{"rendered":"Department Must Accept Payment of Tax, Interest and Penalty After GST Registration Cancellation | HC"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000390557\/department-must-accept-payment-of-tax-interest-and-penalty-after-gst-registration-cancellation-hc\">Shubhankar Om Deo Construction Pvt. Ltd. Versus State of Bihar (2025) 28 Centax 151 (Pat.)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Rajeev Ranjan Prasad<\/strong> &amp; <strong>Ramesh Chand Malviya<\/strong>, JJ.<\/li>\n<li><strong>Shri Dhananjay Mishra<\/strong>, Adv. for the Petitioner.<\/li>\n<li><strong>Shri Vikas Kumar<\/strong>, SC for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner, engaged in works contracts, faced cancellation of its GST registration due to non-payment of taxes during the COVID-19 period. While the petitioner did not dispute the tax demand, financial constraints prevented timely payment. Consequently, the respondent department cancelled the GST registration, which was later upheld by the High Court on grounds of non-compliance with tax obligations. The petitioner then filed a writ application requesting the department to accept the disputed tax amount, along with interest and penalty, relying on <a href=\"https:\/\/www.centaxonline.com\/search?searchData=Circular%20No.%20238%2F32%2F2024&amp;itemType=AP\">Circular No. 238\/32\/2024-GST<\/a> dated 15-10-2024. The respondent department, in its counter affidavit, clarified that the circular applied only to financial years 2017-18, 2018-19, and 2019-20, whereas the petitioner\u2019s case pertained to 2021-22. It was further submitted that the writ application effectively sought to appeal or review the High Court\u2019s prior decision. The petitioner did not contest the department\u2019s position through a reply affidavit.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Hon\u2019ble High Court determined that although the said circular was not applicable to the petitioner\u2019s case, the department was required to accept payments toward outstanding tax liabilities, including interest and penalties, irrespective of the petitioner\u2019s GST registration status. As the petitioner was willing to discharge all dues, the court disposed of the writ application with a directive to the department to accept the payment in satisfaction of the petitioner\u2019s tax liability.<\/p>\n<h2><em>List of Circulars Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Circular%20No.%20238%2F32%2F2024&amp;itemType=AP\">Circular No. 238\/32\/2024<\/a> GST dated 15.10.2024.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Shubhankar Om Deo Construction Pvt. Ltd. Versus State of Bihar&hellip;<\/p>\n","protected":false},"author":5,"featured_media":3279,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-3253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Department Must Accept Payment of Tax, Interest and Penalty After GST Registration Cancellation | HC<\/title>\n<meta name=\"description\" content=\"High Court directs GST department to accept tax dues with interest and penalty from a deregistered taxpayer, despite inapplicability of relief circular.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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