The Gauhati High Court recently issued a ruling that overturned the cancellation of a company’s GST registration. In its decision, the Court instructed the company to submit all pending tax returns within 30 days.
Additionally, the ruling emphasised the importance of settling any outstanding dues, which include tax, penalties, interest, and late fees. The Court clarified that the limitation period for these dues, as outlined in Section 73(10) of the CGST Act, will begin from the date of the Court’s order.
The petitioner, Choudhury Tea and Agro Industries Pvt. Ltd., aggrieved by the cancellation of its GST registration, filed a writ petition under Section 29 of the Central Goods and Services Tax Act, 2017. The petitioner had also submitted an application for revocation on 10.11.2021; however, the same was rejected on 18.11.2022.
The applicant stated that it was registered under companies act 2013, and registration shall stand suspended from 02.09.2021. It mentioned that it did not get the SCN and did not submit any response.
Mr A. Goyal, the counsel appearing on behalf of the applicant, and Mr S. Chetia, the learned counsel who appears on behalf of the respondents.
HC said that the problem was no more res integra, depending on the decision of the Apex court in Motaleb Bhuyan v. State of Assam and ors (2025), which outlined that cancellation must not be absolute if taxpayers are willing to comply
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From the order on 07.10.2021, the response of the applicant on 03.10.2021 was unsatisfactory, and as per that, the registration of the applicant was cancelled because the applicant had not submitted the due returns since October 2020.
The records specified that the applicant had asked for the revocation of the cancellation of the registration via filing an application, which was denied.
In a recent ruling, the bench headed by Justice Devashis Barua has annulled the cancellation order that was issued on October 7, 2021. Additionally, the Court has instructed the petitioner to submit all outstanding returns from October 2020 to the date of the ruling within 30 days following the issuance of this judgment.
HC thereafter stated that the calculation of limitation u/s 73(10) of the CGST Act shall commence from the date of this judgment, except for FY 2025–26, which would comply with Section 44, and mentioned that the applicant must pay arrears, including tax, penalty, interest, and late fees.
Subsequently, the writ petition was disposed of.
| Case Title | Choudhury Tea and Agro Industries Pvt. Ltd vs. Union of India |
| Case No. | WP(C)/252/2026 |
| For the Petitioner | Mr. A Goyal |
| For the Respondent | Mr S. Chetia |
| Gauhati High Court | Read Order |
