Cancelled GST Registration Is Restored Subject to Payment of Outstanding Dues and Filing Returns

By | October 8, 2026
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Cancelled GST Registration Is Restored Subject to Payment of Outstanding Dues and Filing Returns
Issue
Whether a cancelled GST registration can be revoked and restored when the delay in filing returns was due to financial constraints and the statutory period for filing a revocation application has expired.
Facts
  • Registration & Default: The petitioner, registered as M/s Kanang Enterprises, defaulted in filing GST returns due to severe financial constraints.
  • System-Generated SCN: A system-generated Show Cause Notice (SCN) was issued on the GST portal, which the petitioner failed to access or reply to, leading to no returns being filed.
  • Cancellation Order: The GST registration was cancelled by the authorities due to continuous non-filing of returns.
  • Technical & Time Bar: The statutory period for seeking revocation of cancellation under Section 30 had lapsed, and the online portal prevented the petitioner from filing a revocation application.
  • Writ Petition Filed: The petitioner filed a writ petition seeking directions for the restoration of the cancelled GST registration.
Decision
  • On the ground of parity with similar judicial decisions, the cancellation of registration warranted restoration subject to clearing all pending statutory dues (In favour of assessee).
  • The Superintendent CGST, Itanagar Range was directed to intimate the exact outstanding tax dues up to the date of cancellation, along with applicable penalties and fines at the time of restoration (In favour of assessee).
  • The petitioner was directed to pay the intimated dues within 21 days of receiving the calculation (In favour of assessee).
  • Upon proof of payment, the competent authority was ordered to revoke the cancellation order and restore the petitioner’s GST registration (In favour of assessee).
Key Takeaways
  1. Restoration Allowed on Compliance: Cancellation of GST registration due to non-filing of returns can be revoked on humanitarian or financial hardship grounds, provided the assessee clears all tax liabilities, interest, and late fees.
  2. Technical/Time Bar Overcome: The expiry of the statutory timeline for revocation under Section 30 or portal limitations does not bar judicial relief when the taxpayer demonstrates a bona fide intent to pay back-dues and resume business operations.
HIGH COURT OF GAUHATI
Taba Nitin
v.
Union of India
Sanjay Kumar Medhi, J.
WP(C) No. 430 of 2026
SEPTEMBER  9, 2026
Tadu Lampung, Kolin Dagium and Rahul Barman, Advs. for the Appellant. Marto Kato, DSGI for the Respondent.
ORDER
1. Heard Shri M. Kamchang, learned Counsel for the petitioner. Also heard Shri Habung Aape, learned Standing Counsel for the CGST-respondent nos. 3 & 4, Shri L. Lowang, learned Counsel for the respondent no. 2 and Shri T. Meto, appearing on behalf of Shri M. Kato, learned Dy.SGI for the respondent no. 1.
2. Considering the facts and circumstances and as agreed to by the learned counsel for the parties, the instant writ petition is taken up for disposal at the motion stage itself. This Court has also been informed that similar matters have been disposed of including an order dated 29.04.2025 in WP(C)179(AP)/2026 (Rakhe Achi v. Union of India).
3. The grievance is against an order dated 12.10.2025, issued by the Superintendent of CGST, Itanagar Range, whereby, the GST registration of the petitioner has been cancelled.
4. The petitioner is engaged in carrying on multiple businesses in the name and style of M/s Kanang Enterprises, having its principal place of business at Pitapool, Yazali, in the district of Keyi Panyor. The petitioner’s firm has been registered under the Goods and Services Tax Act, 2017 bearing Registration No. 12BGOPN7131A1ZS with effect from 01.02.2024.
5. It is the case of the petitioner that due to financial constraints he could not continue his business activities and consequently failed to file GST returns. A system generated show cause notice dated 08.09.2025 was thereafter issued to the petitioner through GST portal on the ground of non-furnishing of returns for a continuous period of six months. By the said notice, the petitioner was directed to submit his reply within thirty days from the date of service thereof and to appear before the jurisdictional officer on 16.10.2025. Simultaneously, the GST registration of the petitioner was suspended with immediate effect.
6. It is contended that as the GST returns were earlier being filed through GST practitioners/Chartered Accountants, he did not regularly access the GST portal or his e-mail account and therefore, remained unaware of the issuance of the aforesaid notice. Consequently, he could neither submit his reply nor take steps to file the defaulted returns. Thereafter, vide the impugned order dated 12.10.2025, the GST registration of the petitioner has been cancelled on account of non-filing of returns.
7. Shri Kamchang, learned counsel for the petitioner submits that since the cancellation order was passed on 12.10.2025 and the statutory period for seeking revocation has already expired, coupled with the restriction on filing returns after the expiry of three years from the due date, the petitioner is presently unable to file the pending returns and discharge his tax liabilities through the GST portal.
8. He has also referred to certain orders passed in similar cases wherein, this Court has passed conditional order by directing the respondent authorities to revoke the cancellation of the GST registration, subject to full payment of all the dues and accordingly submit that the case of the petitioner is squarely covered by the said orders. Therefore, he prays that a similar relief may be provided to the petitioner.
9. Shri Meto, learned counsel appearing on behalf of Shri M. Kato, learned DSGI for respondent No. 1, and Mr. H. Aape, learned Standing Counsel, CGST, for respondent nos. 3 & 4, fairly submit that the issue involved in the present writ petitionis similar to the one considered in similar matters decided by this Court. Therefore, they submit that they would have no objection if a similar direction is passed in this present writ petition also.
10. I have considered the submissions of the learned counsel for the parties and also perused the order dated 29.04.2025, passed in Rakhe Achi (supra).
11. Having considered the rival submissions and upon perusal of the orders passed in similar matters this Court is of the considered opinion that the petitioner is entitled for similar relief.
Accordingly, this writ petition is allowed with the following directions:
(i) The Superintendent of CGST, Itanagar Range GST (respondent No.4), shall intimate the petitioner with regard to his total statutory outstanding dues, if any, in the name of the petitioner having trade name of M/s Kanang Enterprises till the date of cancellation of the GST registration and any penalty/fine as may be found due as on the date of restoration of the GST registration so as to enable the petitioner to make payment of the entire statutory dues under CGST Act by the petitioner.
(ii) The petitioner thereafter, shall make the payment of the dues within 21(twenty-one) days from the date of receipt of such intimation.
(iii) Upon a proof of payment made within the stipulated time allowed being submitted, the respondent No. 4 shall pass an appropriate order to revoke the order dated 12.10.2025 and restore the GST registration of the petitioner.
12. The writ petition accordingly stands disposed of.