GST Registration Cancellation Set Aside Subject to Filing Overdue Returns and Paying Outstanding Statutory Dues

By | August 7, 2026
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GST Registration Cancellation Set Aside Subject to Filing Overdue Returns and Paying Outstanding Statutory Dues

GST Registration Cancellation Set Aside Subject to Filing Overdue Returns and Paying Outstanding Statutory Dues
Issue
Whether a GST registration cancelled under Section 29 solely due to non-filing of returns for six consecutive months can be restored if the taxpayer files all pending returns and clears all statutory dues within a stipulated timeframe.
Facts
  • The petitioner’s GST registration was cancelled by the tax authority due to failure to file GST returns for six consecutive months.
  • The petitioner challenged the cancellation order by filing a writ petition under Article 226 of the Constitution of India.
  • The petitioner provided a satisfactory explanation for the delay in approaching the High Court.
  • The sole ground for the cancellation of registration was the default in filing returns for six consecutive months.
Decision
  • The High Court entertained the writ petition on merits, applying Division Bench precedent allowing an opportunity to cure non-filing defaults [Para 9].
  • The cancellation order was set aside subject to the petitioner filing all pending returns and paying all due tax, interest, fines, penalties, and late fees [Para 10].
  • The petitioner was directed to complete compliance within six weeks from receiving the server copy of the order [Para 10].
  • The jurisdictional officer was directed to restore the petitioner’s GST registration upon full compliance [Para 10].
Key Takeaways
  • Opportunity to Cure Compliance Defaults: Cancellation of GST registration resulting strictly from return filing defaults can be set aside to allow the taxpayer to restore their business operations.
  • Preconditions for Restoration: Full restoration of registration requires the complete discharge of backlogged compliance, including payment of tax, interest, fines, penalties, and late fees.
  • Strict Timelines for Relief: Relief granted by courts in registration cancellation matters is conditional upon strict compliance within the court-mandated time limit.
HIGH COURT OF CALCUTTA
Subhendu Dutta
v.
Union of India
Hiranmay Bhattacharyya, J.
WPA No. 1144 of 2026
JULY  24, 2026
Himangshu Kumar Roy, Subhasish Poddar, Abhilash Mittal and Ms. Hiqa Naz Pradhan for the Petitioner. Ratan Banik and Biswa Raj Agarwal for the Respondent.
ORDER
1. This application under Article 226 of the Constitution of India is directed against an order dated May 24, 2024 passed by the Superintendent, Jalpaiguri cancelling the registration of the petitioner.
2. After going through the impugned order this Court finds that the registration of the petitioner was cancelled on the ground that the petitioner failed to file consecutive six months’ returns.
3. Learned advocate appearing for the petitioner places reliance on a Division Bench judgment of this Court in the case of Subhankar Golder v. Asstt. Commissioner of State Tax 104 GST 382/87 GSTL 88 (Calcutta) in support of his contention that an opportunity has to be granted to the petitioner to remedy the breach.
4. Affidavit of service filed in Court today is taken on record.
5. Mr. Banik submits that the registration of the petitioner was cancelled long back sometime in the month of May, 2024 and the petitioner has approached this Court after two years of cancellation of such registration. He submits that this writ petition is liable to be dismissed on the ground of delay and latches.
6. However, after going through the averments made in the writ petition this Court finds that the petitioner has satisfactorily explained the delay in approaching the Court.
7. For such reasons, this Court is inclined to entertain this writ petition and decide the same on merits.
8. The Hon’ble Division Bench in Subhankar Golder (supra) held that in case the registration is cancelled on the ground that the assessee failed to furnish returns for a continuous period of six months, an opportunity can be provided to the said assessee to remedy the breach. The said decision shall squarely apply to the facts of the case on hand.
9. In view thereof, the order dated May 24, 2024 cancelling the registration of the petitioner is set aside subject to the condition that the petitioner files the returns for the entire period of default, by depositing requisite amount of tax, interest, fine, penalty and late fees.
10. If the petitioner complies with the directions passed hereinbefore within a period of six weeks from the date of receipt of a server copy of this order, the registration of the petitioner shall be restored by the jurisdictional officer. However, if the petitioner fails to comply with the aforesaid directions, the benefit of this order shall not enure to the petitioner and the writ petition shall automatically stand dismissed without any further reference to this Court.
11. For the purpose of ensuring compliance of this order and direction, the respondents are directed to open the portal within a period of two weeks from the date of communication of a server copy of this order, so that the returns can be filed and the tax, interest, penalty and late fees can be remitted by the petitioner.