HC Allows GST Revocation Subject to Filing of Pending GST Returns and Payment of Outstanding Dues

The Gauhati High Court granted the taxpayer another chance in the GST cancellation case by instructing the concerned tax authorities to consider the petitioner’s application seeking the GST revocation if she furnishes all her pending GST returns and pays all dues, including tax, penalty, interest, and late fees.

The dispute arose when the Superintendent, CGST, Naharkatia Range cancelled the GST registration bearing no. 18AYKPD8297Q1ZC of the petitioner, Smti Ivy Dutta, vide an order dated March 30, 2022, on account of non-filing of GST returns continuously for 6 months.

Initially, the petitioner was served with a show cause notice (SCN) dated March 09, 2022, wherein she was granted a time period of 7 days to file a reply and a personal hearing date was scheduled for March 16, 2022. Alongside, the GST authorities had suspended the petitioner’s GST registration with effect from March 09, 2022, and thereafter cancelled her GST registration on March 30, 2022, over non-filing any reply to the SCN. The petitioner had tried seeking GST revocation; however, the application for the same also could not be filed, as the prescribed time limit had elapsed.

The aggrieved petitioner filed an appeal before the Additional Commissioner (Appeals) CGST, C.Ex. & Customs, Guwahati; however, her appeal was rejected through an order dated April 29, 2026. Subsequently, the petitioner filed a writ petition in the Gauhati High Court, challenging the GST cancellation order dated March 30, 2022 and the order confirming GST cancellation dated April 29, 2026.

The petitioner claimed that during the tax proceedings, she was suffering from health issues and consequently could not properly manage her business affairs and this was the only reason why she failed to file the requisite GST returns within the stipulated time.

When the court analysed the facts of the case, it noted that the petitioner is willing to adhere to the formalities of sub-rule (4) of Rule 22 of the CGST Rule, 2017; hence, citing an earlier judgement in the case of Dhirghat Hardware Stores & Anr. vs. Union of India & 3 Ors., the court decided to grant the petitioner a second opportunity.

Accordingly, the petitioner is allowed to appeal before the concerned authority within 60 days from the date of passing the present judgement, i.e., June 08, 2026, seeking restoration of his GST registration. If the petitioner complies with the provisions of Rule 22 (4) of the CGST Rules, 2017, files all his pending GST returns and pays all arrears, including tax, penalty, interest and late fees, then the concerned authorities must consider the petitioner’s application seeking the GST restoration.