Cancellation Order Set Aside and GST Registration Restored Subject to Filing Pending Returns and Paying Arrears Within 30 Days

By | October 3, 2026
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Cancellation Order Set Aside and GST Registration Restored Subject to Filing Pending Returns and Paying Arrears Within 30 Days
Issue
Whether the cancellation of GST registration due to non-filing of returns for six continuous months can be set aside and restored upon the taxpayer’s undertaking to clear all pending returns along with tax, penalty, interest, and late fees.
Facts
  • Business & Registration: The petitioner was engaged in providing works contract services and held active registration under the CGST Act, 2017 / Assam Goods and Services Tax (AGST) Act, 2017.
  • Default & Cancellation: On account of non-filing of GST returns for a continuous period of six months, the petitioner’s registration was suspended and subsequently canceled by the revenue authorities via an order dated December 9, 2024.
  • Reason for Default: The petitioner cited severe and acute financial hardship during the financial years 2023–24 and 2024–25 as the cause for the delay in filing GST returns.
  • Show Cause Notice (SCN): The revenue authority issued a SCN proposing to reject the application for revocation of cancellation, despite the petitioner asserting that GSTR-3B returns for quarterly periods of the relevant financial years were being submitted.
  • Writ Petition: Aggrieved by the cancellation order dated December 9, 2024, and the proposed rejection of revocation, the petitioner filed a writ petition seeking quashing of the cancellation order and restoration of the GST registration.
Decision
  • Relief Granted: Following the precedent in Motaleb Bhuyan v. State of Assam  97 GSTL 7 (Gauhati), the court ruled in favor of the assessee.
  • Cancellation Set Aside: The order dated December 9, 2024, canceling the petitioner’s GST registration, was set aside.
  • Timeline for Compliance: The petitioner was directed to file all pending returns within 30 days from the date of the court order.
  • Dues & Liabilities: The petitioner remains fully liable to pay all arrears of tax, penalty, interest, and late fees as prescribed under the law.
  • Limitation Period: The limitation period for determination of tax dues under Sections 73 and 74 shall run from the date of the court order, except for FY 2025–26, which will follow the standard due date based on the annual return.
Key Takeaways
  • Pragmatic Approach to Revocation: Strict procedural delays in seeking revocation of GST registration can be condoned by High Courts to allow honest taxpayers facing financial distress to resume business operation and achieve tax compliance.
  • Revenue Interest Protected: Restoration of GST registration is conditional upon complete payment of tax arrears, late fees, interest, and penalties, ensuring no loss of legitimate revenue to the government.
  • Adjustment of Limitation Timelines: Where a cancellation order is set aside after a delay, the statutory period of limitation for assessing liabilities (under Sections 73/74) begins from the date of the court’s restoration order to avoid prejudice to the tax department.
HIGH COURT OF GAUHATI
Bhaskar Baishya
v.
Union of India
DEVASHIS BARUAH, J.
WP(C) No. 4929 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 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 09.12.2024 passed by the Superintendent, Nalbari 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 execution of Works Contract Services under the name and style of “Bhaskar Baishya”. 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 18ATTPB2839A1ZS.
4. The case of the petitioner herein is that due to 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 06.11.2024 to the petitioner. It was further mentioned in the said show cause notice that the registration of the petitioner stood suspended w.e.f 06.11.2024. On 09.12.2024, 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 09.12.2024.
5. It is the case of the petitioner that during the year 2023-25, the petitioner was facing acute financial hardship and for that reason could not concentrate on his business activities and also failed to make GST compliances. For that reason, the petitioner could not visit the GST portal. Thereafter, on 20.03.2025, the petitioner filed the necessary application seeking revocation with a prayer to condone the delay in filing the said revocation application and accordingly, the same was condoned vide order dated 21.03.2025. However, the respondent No. 3 issued a show-cause notice dated 22.04.2025 for rejection of the application for revocation of cancellation of registration. It is under such circumstances, the petitioner has 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 January-March, April-June, July-September and October-December for the financial years 2023-24 and 2024-25 respectively. The filing of the returns in Form GSTR-3B has been enclosed as Annexure-F (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 09.12.2024 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.