Cancelled GST registration set aside and restored subject to filing returns and clearing dues.
Issue
Whether the cancellation of GST registration for non-filing of returns for six months should be set aside and restored on the condition that the taxpayer files all pending returns and clears all statutory dues, penalties, interest, and late fees.
Facts
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Business Profile: The petitioner is engaged in providing works contract services and held active GST registration.
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Default & Cancellation: Due to non-filing of statutory returns for continuous six months, a Show Cause Notice (SCN) in Form REG-17/31 was issued, suspending the registration, which was subsequently cancelled by the competent authority.
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Dismissal of Statutory Remedies: The petitioner’s appeal was dismissed as barred by limitation, and revocation under Section 30 could not be sought due to the expiry of the prescribed timeframe.
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Writ Challenge: The petitioner filed a writ petition seeking restoration of GST registration and alignment of the limitation period for demand proceedings.
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Judicial Precedent: The facts were identical to Motaleb Bhuyan v. State of Assam (Gauhati).
Decision
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Quashing of Cancellation Order: Following the precedent in Motaleb Bhuyan, the order cancelling the GST registration was set aside and quashed. [Para 9] [In favour of assessee]
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Conditional Restoration: The petitioner was directed to file all pending GST returns within 30 days and clear all arrears of tax, interest, penalty, and late fees. [Para 9] [In favour of assessee]
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Limitation Period Computation: The limitation period under Sections 73(10) and 74(10) for demand issuance is to be computed afresh from the date of the instant order, except for FY 2025-26, which remains governed by Section 44. [Para 9] [In favour of assessee]
Key Takeaways
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Business Continuity Over Procedural Defaults: Courts favor enabling business operations by restoring GST registrations cancelled for return defaults, provided statutory revenue interest is safeguarded.
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Conditional Compliance Mandate: Restoration of cancelled registration is strictly contingent upon filing all pending returns within a stipulated timeframe (30 days) and paying all tax arrears, interest, and late fees.
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Resetting Limitation for Authorities: Setting aside a cancellation order resets the limitation computation period for tax authorities under Sections 73(10) and 74(10) from the date of the restoration court order.
HIGH COURT OF GAUHATI
Sri Nur Alom
v.
Union of India
DEVASHIS BARUAH, J.
WP (C) No. 4971 of 2026
SEPTEMBER 11, 2026
R.S. Mishra, Adv. for the Petitioner. S.C. Keyal, Sr. Adv., B. Gogoi, Addl. A.G. and K. Jain, Adv. for the Respondent.
ORDER
1. Heard Mr. R.S. Mishra, the learned counsel appearing on behalf of the petitioner. Mr. S.C. Keyal, the learned Senior Counsel assisted by Mr. K. Jain, the learned counsel appears on behalf of the respondent Nos. 1 to 4 and Mr. B. Gogoi, the learned Additional Advocate General appears on behalf of the respondent Nos. 5 and 6.
2. The petitioner herein has filed the instant writ petition challenging the order dated 17.10.2024 passed by the Superintendent, Goalpara Range whereby the petitioner’s registration was cancelled. The brief facts which led to the filing of the instant writ petition are narrated hereinbelow.
3. The petitioner claims that the petitioner is engaged in the business of execution of works contract services under the name and style of “Nur Alom”. For the purpose of carrying on the business, the petitioner was registered under the Central Goods and Services Tax Act, 2017, and was issued a registration number bearing 18AWLPA9063E1ZH.
4. The case of the petitioner herein is that because of non-filing of GST returns for a continuous period of six months, the Jurisdictional Officer issued a show cause notice for cancellation of the registration in Form GST REG-17/31 dated 13.08.2024 to the petitioner. It was further mentioned in the said show cause notice that the registration of the petitioner stood suspended w.e.f. 13.08.2024. On 17.10.2024, the respondent No. 4 cancelled the registration on the ground of failure to furnish returns for the prescribed period. The cancellation of the registration was given effect from 17.10.2024.
5. It is the case of the petitioner that during the year 2024, the petitioner was facing acute financial hardship and for that reason, the petitioner could not concentrate on his business activities and also failed to make GST compliances. For that matter, the petitioner could not visit the GST portal for a few weeks. It is the further case of the petitioner that thereafter, the petitioner filed an appeal on 29.06.2026 along with an application for condonation of delay before the respondent No. 3. However, the same was dismissed as barred by limitation vide order dated 22.07.2026. Thereafter, the petitioner again tried to file the necessary application seeking revocation of the GST registration, however, the same could not be filed as the time limit prescribed for filing the revocation application had elapsed. It is under such circumstances, the petitioner approached this Court by filing the present petition.
6. The learned counsel for the petitioner submitted that the petitioner had submitted the returns for the months of July-December for the financial year 2024-25. The filing of the returns in Form GSTR-3B has been enclosed as Annexure-E (Colly.) to the writ petition.
7. This Court finds it pertinent to take note of that the issue similar to the present one was dealt with by this Court in detail in the judgment rendered in the case of Motaleb Bhuyan v. State of Assam 97 GSTL 7 (Gauhati)/(2025) SCC OnLine Gau 1429.
8. It is the opinion of this Court that as the facts of the instant case are similar to those of the petitioners in the judgment rendered in the case of Motaleb Bhuyan (supra), the petitioner herein is entitled to similar reliefs.
9. Accordingly, the instant writ petition stands disposed of with the following observations and directions:
| (i) | The order of cancellation of registration dated 17.10.2024 is set aside and quashed. |
| (ii) | The petitioner herein is directed to file the returns for the period from the date the petitioner had failed to file the returns till date, within 30 days from the date of the instant order. |
| (iii) | The period as stipulated in Section 73(10)/74(10) of the CGST Act of 2017/AGST Act, 2017 shall be computed from the date of the instant order, except for the financial year 2025-26, which shall be as per Section 44 of the CGST Act of 2017/AGST Act, 2017. |
| (iv) | The petitioner herein shall also be liable to make payment of the arrears i.e. tax, penalty, interest and late fees. |