Restoration Of Cancelled GST Registration Permissible If Taxpayer Clears Dues And Files Returns: Gauhati High Court
The Gauhati High Court stated that the restoration of cancelled GST registration is permissible if the taxpayer clears dues and files returns.
The Bench of Justice Sanjay Kumar Medhi observed that “proviso to sub-rule (4) of Rule 22 of the CGST Rules 2017 provides that if a person, who has been served with a show cause notice under Section 29(2)(c) of the CGST Act, 2017, is ready and willing to furnish all the pending returns and to make full payment of the tax itself along with applicable interest and late fee, the officer, duly empowered, can drop the proceedings and pass an order in the prescribed Form i.e. Form GST REG-20.”
The assessee/petitioner has been carrying out his proprietorship business under the name & style, “M/s Aruhan Enterprise” as the sole proprietor.
On the reason of non-filing of GST returns for a continuous period of six months, the petitioner was served with a show cause notice asking him to furnish reply to the aforesaid notice within a period of 30 (thirty) days from the date of service of notice and it was mentioned in the aforesaid show cause notice that if the petitioner fails to furnish a reply within the stipulated date or fails to appear for personal hearing on the appointed date and time, the case will be decided ex-parte on the basis of the available records and on merits.
Thereafter, the order was passed by the Assistant Commissioner of State Tax whereby the petitioner’s GST registration has been cancelled for not furnishing returns for a continuous period of 6 (six) or more months.
The assessee submitted that due to non-conversance of online procedure, she could not visit the GST portal and accordingly could not submit any reply to the said show cause notice in time. It was further contended that when the petitioner came across the said notice, the time for filing reply and attending the hearing was already over and order had also been uploaded in the portal.
The assessee further contended that after recovering from impact of Covid-19, she updated all her pending returns up to the month of May, 2023 as allowed by the GST portal and while updating her returns, the petitioner has also discharged all her GST dues along with his late fees and interest.
The bench stated that the GST registration of the assessee has been cancelled under Section 29(2)(c) of the CGST Act, 2017 for the reason that the assessee did not submit returns for a period of 6 (six) months or more and the provisions contained in the proviso to sub-rule (4) of Rule 22 of the CGST Rules, 2017 and cancellation of registration entails serious civil consequences.
“In the event the petitioner approaches the officer, duly empowered, by furnishing all the pending returns and make full payment of the tax dues, along with applicable interest and late fee, the officer duly empowered, has the authority and jurisdiction to drop the proceedings and pass an order in the prescribed Form,” opined the bench.
In view of the above, the bench directed the assessee to approach the concerned authority within a period of two months seeking restoration of her GST registration.
Case Title: Shahima Khatun v. The State of Assam & Ors.
Case Number: WP(C)/3300/2025
Counsel for Petitioner/ Assessee: A K Gupta, R K Mahanta and M Nirola and R S Mishra
