High Court Restores Cancelled GST Registration Subject

High Court Restores Cancelled GST Registration Subject to Pending Return Filing and Clearing Dues

Issue

Whether the cancellation of GST registration due to continuous non-filing of returns should be set aside and restored on the condition that the taxpayer files all pending returns within 30 days and clears all statutory tax arrears, interest, penalties, and late fees.

Facts

Business Profile: The petitioner is a transport service provider holding a valid GST registration for the assessment period 2025–26.
Default & Cancellation: On account of continuous non-filing of statutory GST returns, a Show Cause Notice (SCN) in Form GST REG-17/31 was issued.
Suspension & Order: The petitioner’s registration was initially suspended and subsequently cancelled by the Superintendent.
Exhaustion of Remedies: The statutory timeline to apply for revocation under Section 30 had lapsed.
Writ Challenge: The petitioner filed a writ petition challenging the cancellation order and seeking restoration of the GST registration.
Covered Precedent: The issue and facts were directly covered by the decision in Motaleb Bhuyan v. State of Assam (Gauhati).

Decision

Cancellation Set Aside: Following the ruling in Motaleb Bhuyan, the cancellation order was set aside and the GST registration stood restored. [Para 9] [In favour of assessee]
Mandatory Return Filing: The petitioner was directed to file all pending returns within 30 days from the date of the order. [Para 9] [In favour of assessee]
Payment of Dues: The petitioner remains liable for clearing all arrears of tax along with applicable interest, penalties, and late fees. [Para 9] [In favour of revenue]
Limitation for Adjudication: The period of limitation for adjudication under Section 73 and Section 74 shall run from the date of the order, except for FY 2025–26, which remains governed by the annual return timelines under Section 44. [Para 9] [In favour of assessee]

Key Takeaways

Relief via Precedent: Where the facts of non-filing and registration cancellation mirror established judicial precedents, courts grant similar conditional restoration remedies to enable business continuity.
Time-Bound Compliance Mandate: Setting aside a cancellation order is strictly subject to the taxpayer filing all pending returns within a stipulated timeframe (30 days) and liquidating all tax liabilities, penalties, interest, and late fees.
Reset of Adjudication Period: The limitation period for department proceedings under Sections 73(10) and 74(10) runs afresh from the date of the restoration order, protecting the Revenue’s right to assess while granting relief to the taxpayer.

HIGH COURT OF GAUHATI

Janardan Tamuli @ Janardan Tamuly

Union of India

DEVASHIS BARUAH, J.

WP(C) No. 4928 of 2026

SEPTEMBER 11, 2026

R.S. Mishra, Adv. for the Petitioner. S.C. Keyal, Sr. Adv., B. Gogoi, Addl. AG 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 3 and Mr. B. Gogoi, the learned Additional Advocate General appears on behalf of the respondent Nos. 4 and 5.

2. The petitioner herein has filed the instant writ petition challenging the order dated 28.07.2025 passed by the Superintendent, Duliajan 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 he is engaged in the business of providing transport service under the name and style of Janardan Tamuly. 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 18AHEPT3088L1ZO.

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 12.02.2025 to the petitioner. It was further mentioned in the said show-cause notice that the registration of the petitioner stood suspended w.e.f. 12.02.2025. On 28.07.2025, the respondent No. 3 cancelled the registration on the ground of failure to furnish returns for the prescribed period. The cancellation of the registration was given effect from 28.07.2025.

5. It is the case of the petitioner that due to some miscommunication between the petitioner and his tax consultant, the returns were not filed regularly. It is the further case of the petitioner that on coming to know about the order dated 28.07.2025, the petitioner tried to file the necessary application seeking revocation of the GST cancellation, 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 April-June and July-September for the financial year 2025-26. The filing of the returns in Form GSTR-3B has been enclosed as Annexure-D (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 28.07.2025 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.