Quashed Cancellation of GST Registration Restored Upon Filing Pending Returns and Paying Outstanding Liabilities

By | November 5, 2026
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Quashed Cancellation of GST Registration Restored Upon Filing Pending Returns and Paying Outstanding Liabilities
Issue Whether a GST registration cancelled for non-filing of returns can be restored to enable filing of pending returns despite portal restrictions, and how the limitation period for adjudication is computed post-restoration.
Facts
  • Business Operations & Suspension: The petitioners, engaged in catering and event management, were registered under the CGST/AGST Act.
  • Cancellation Order: Due to non-filing of statutory returns, a Show Cause Notice was issued, suspending the registration, followed by a formal cancellation order dated 09.04.2024.
  • Portal Restriction: To seek revocation, the petitioners attempted to file pending Form GSTR-1 and GSTR-3B returns, but the GST portal rejected filings for older periods citing a three-year statutory bar.
  • Writ Petition: The petitioners filed a writ petition seeking quashing of the cancellation order and permission to file all backdated returns.
  • Legal Precedent: The issue was directly covered by the decision in Motaleb Bhuyan v. State of Assam [2025] (Gauhati High Court / Supreme Court).
Decision
  • The cancellation order dated 09.04.2024 was quashed, and registration was restored [Para 9].
  • Petitioners were permitted to file all pending returns within 30 days, notwithstanding portal-imposed cut-off restrictions [Para 9].
  • The limitation period for tax authorities to pass adjudication orders under general and fraud provisions (Sections 73 and 74) shall run fresh from the date of this court order, except for FY 2026-27, which remains governed by the standard annual return timeline [Para 9].
  • Petitioners remain strictly liable to pay all pending tax arrears, interest, penalties, and late fees [Para 9].
  • Decided in favour of assessee.
Key Takeaways
  • Portal Technicalities Cannot Defeat Substantive Rights: System-generated portal blocks (such as the three-year return filing bar) cannot override judicial directions permitting a taxpayer to regularize compliance.
  • Restoration Subject to Full Compliance: Quashing a cancellation order is contingent upon the taxpayer clearing all pending returns and paying applicable tax, interest, penalty, and late fees within the stipulated window.
  • Resetting of Adjudication Timelines: To protect Revenue’s interest, the statutory limitation period for authorities to initiate or complete assessment proceedings resets from the date of the restoration order.
HIGH COURT OF GAUHATI
Do Nam Enterprise
v.
Union of India
Devashis Baruah, J.
WP(C)/5329/2026
OCTOBER  14, 2026
C. Agarwal, Adv. for the Petitioner. S.C. Keyal, Sr. Adv. and K. Jain for the Respondent.
ORDER
1. Heard Mr. C Agarwal, the learned counsel appearing on behalf of the petitioners. I have also heard Mr. S C Keyal, the learned Senior Advocate & Standing Counsel, CGST assisted by Mr. K Jain.
2. The petitioners herein are aggrieved by the order of cancellation of registration dated 09.04.2024 in terms with Section 29 of the Central Goods and Service Tax Act, 2017 (for short, ‘the CGST Act of 2017’). The petitioners, thereupon, filed the returns seeking revocation of the cancellation of the registration, however, the same was not allowed by the GST Portal as the time limit prescribed for filing of returns had elapsed. It is under such circumstances the petitioners have, therefore, approached this Court by filing the instant writ petition.
3. The materials on record reveal that the petitioners herein are engaged in the business of Catering and Event Management and is a registered Assessee under the Central Goods and Service Tax Act, 2017 (for short, ‘CGST Act of 2017’)/Assam Goods & Services Tax Act, 2017 (for short, ‘the AGST Act of 2017). The petitioners have obtained a registration under the CGST Act of 2017 and were issued a Registration number bearing 18BRYPP3373F1Z3.
4. On account of non-submission of the returns, which is required in terms with Section 39 of the CGST Act of 2017 (which the petitioners do not deny in the instant petition), a show cause notice was issued on 15.01.2023 asking the petitioners as to why the registration should not be cancelled. In addition to that, it was also mentioned that the GST registration shall stand suspended from 15.01.2023.
5. The learned counsel for the petitioners submitted that the Show Cause Notice which was issued on 15.01.2023 was vague, inasmuch as, no reason as provided under Section 29 of the CGST Act, 2017 has been mentioned. The learned counsel for the petitioners further submitted that even in the order of cancellation dated 09.04.2024 there are no reasons assigned as to why the registration has been cancelled.
6. It is the further case of the petitioners that the petitioners had no knowledge about such cancellation and at the time when the petitioners applied for enrolling in certain schemes announced by the Government of India, the petitioners came to learn that the petitioners registration had been cancelled.
7. The record also reveals that the petitioners thereafter had sought for revocation of the cancellation of the registration by filing the returns, which was, however, disallowed by the GST Portal stating that the “You are not allowed to file GSTR-1 & GSTR-3B for tax period January, 2023 after the expiry of 3 years from the respective due date of filing”. In this regard, this Court finds it very pertinent to take note of that the issue involved in the instant proceedings is no longer res integra, taking into account that this Court had already dealt with similar issues in the case of Motaleb Bhuyan v. State of Assam 97 GSTL 7 (Gauhati)/2025 SCC OnLine SC 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 petitioners herein are 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 09.04.2024 is set aside and quashed.
(ii) The petitioners herein are directed to file the returns for the period from the date the petitioners 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 2026-27, which shall be as per Section 44 of the CGST Act of 2017/AGST Act, 2017.
(iv) The petitioners herein shall also be liable to make payment of the arrears i.e. tax, penalty, interest and late fees.