Gauhati High Court Permits Restoration of Cancelled GST Registration After Compliance

The Gauhati High Court on 18 May directed the GST authorities to consider restoration of a taxpayer’s cancelled GST registration after noting that the petitioner had already filed pending returns and deposited the penalty amount. Justice Kardak Ete disposed of the writ petition filed by Smti Bina Taipodia, proprietor of M/s Luknu Buchi Enterprises, challenging cancellation of GST registration for non-filing of returns.

The petitioner’s GST registration bearing GSTIN/UIN: 12CBPPT8479Q1ZC was cancelled by the Superintendent, CGST and SGST Department, Pasighat Range, vide order dated 29.05.2025 on the ground of failure to furnish returns. The petitioner submitted before the High Court that although a show cause notice dated 07.10.2024 had been issued, the same was not received by her and therefore no reply could be filed.

The petitioner further stated that there was no intention to evade tax and the delay in filing returns occurred due to health-related issues. It was also brought to the notice of the Court that the requisite tax dues had already been paid on 23.04.2026, but the GST registration could not be restored because of delay in filing the restoration application.

Relying on earlier decisions including Dug Rade vs. Union of India and Pankaj Mohan vs. Union of India, the petitioner contended that similar relief had already been granted by the High Court in cases where taxpayers subsequently filed pending returns and cleared dues.

The Court referred to Rule 22(4) of the CGST Rules, 2017, which provides that where a registered person furnishes all pending returns and makes full payment of tax dues along with applicable interest and late fee, the proper officer may drop cancellation proceedings and restore registration. The Court highlighted

“If the petitioner submits such an application and complies with all the requirements as provided in the proviso to Rule 22(4) of the Rules, the concerned authority shall consider the application of the petitioner for restoration of GST registration in accordance with law.”

Taking note of the fact that the petitioner had already filed the pending returns and deposited the penalty amount, the High Court held that the case was covered by earlier orders passed in similar matters. Thus, the Court directed the petitioner to file an appropriate application before the respondent authorities within 20 days seeking restoration of GST registration.

The Court further directed the CGST authorities to verify and consider the application in accordance with law and restore the GST registration thereafter. The entire exercise was directed to be completed within four weeks from the date of receipt of the certified copy of the order.

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