GSTAT Hyderabad ruled that once the GST Department restores a taxpayer's registration, its appeal against cancellation becomes infructuous. This bars the Revenue from pursuing contradictory litigation.
Restoration of GST Registration Renders Appeals Infructuous
The GST Appellate Tribunal (Hyderabad Zone) dismissed departmental appeals challenging the cancellation of taxpayer registrations after the tax authorities had already restored those registrations. The Tribunal held the appeals were rendered infructuous by the Revenue’s own remedial action.
The decision turned on the principle that litigation cannot proceed when the subject matter no longer exists. By restoring registration, the Department implicitly acknowledged the initial cancellation was unsustainable or no longer warranted. The Tribunal declined to entertain appeals seeking to overturn orders that had already been practically reversed.
This order warns the Revenue against maintaining inconsistent positions. Practitioners should move promptly to seek dismissal of departmental appeals when registrations are reinstated, citing administrative finality and estoppel. However, eligibility for ITC or refunds post-restoration remains subject to independent scrutiny.
