The High Court of Gauhati has ruled that a business can regain its Goods and Services Tax (GST) registration after it had been cancelled due to not submitting the required tax returns. The court decided this after the business paid all outstanding dues and completed the necessary paperwork.
The taxpayer, Abdur Rofique, was running a proprietorship under the name “A. R. Electrical Enterprises” and was registered under the CGST/AGST Acts. From an order on 18.07.2023, his GST registration was cancelled for failing to submit the returns for more than 6 months. SCN was issued previously, and no date for a personal hearing was provided.
The applicant was not well and could not respond to the notice or submit the returns within the given time. After his recovery, he submitted all the due returns up to July 2023 and filed the dues along with the late fees and interest. Since the 270-day time limit had already expired, his attempt to apply for revocation has failed. Then, before the Court, he seeks relief.
Under Rule 22(4) of the CGST Rules, the applicant desires to fulfil all prerequisites along with filing the due returns and clearing dues with interest and late fees, the taxpayer’s counsel mentioned.
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If for 6 months the returns were not submitted, then as per Section 29(2)(c) of the CGST Act, GST registration can be cancelled. The procedure has been mentioned under Rule 22, which permits the cancellation via a show cause notice. The officer can avoid the cancellation proceedings and restore the registration if the taxpayer subsequently submits all pending returns and pays all outstanding dues.
The applicant fulfils such requirements and is referred to a similar case (Sanjoy Nath v. Union of India), where relief was granted under the same rule, the court stated.
For not filing returns for more than 6 months, the GST registration of the applicant was cancelled, Justice Sanjay Kumar Medhi mentioned. As cancellation had negative outcomes, and Rule 22(4) permitted restoration if returns and dues were cleared, the Court ruled that the officer can avoid proceedings if the applicant fulfils these requirements.
Within two months, the bench asked the applicant to apply for the restoration. If all due returns are submitted and dues are filed, then the officer will determine the application in 60 days.
The time limit u/s 73(10) shall count from the date of this order, except for FY 2024-25, which shall follow Section 44. The applicant remained accountable for paying any pending tax, interest, penalty, and late fees.
Therefore, the writ petition was disposed of.
| Case Title | Abdur Rofique vs The Union Of India |
| Case No. | WP(C)/3409/2025 |
| For Petitioner | MR. R S Mishra, MR. R K Mahanta, MR. A K Gupta |
| For Respondent | DY.S.G.I., SC, GST |
| Gauhati High Court | Read Order |
