Cancellation Order Set Aside for Unserved SCN Subject to Filing Pending Returns Within 30 Days

By | September 18, 2026
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Cancellation Order Set Aside for Unserved SCN Subject to Filing Pending Returns Within 30 Days
Issue
Whether a GST registration cancellation order passed without serving a show cause notice (SCN) can be sustained, and whether the assessee can be permitted to restore its registration by filing all pending returns along with statutory dues.
Facts
  • The petitioner, a company engaged in construction, contracting, and supply, was registered under the CGST Act and Assam GST (AGST) Act.
  • The revenue authority issued an order cancelling the petitioner’s GST registration, citing a show cause notice reference.
  • The petitioner asserted that no show cause notice was ever issued or served upon it prior to the cancellation.
  • The petitioner could not file its GST returns due to a lack of familiarity with the GST portal, and could not seek revocation of cancellation through the portal as the statutory time limit had lapsed and the portal blocked the application.
  • Aggrieved by the cancellation order and inability to apply for revocation, the petitioner filed a writ petition before the High Court.
Decision
  • The High Court set aside the order cancelling the petitioner’s GST registration due to non-service of the show cause notice.
  • The petitioner was directed to file all pending GST returns within 30 days from the date of the order.
  • The Court directed that the statutory period for any determination proceedings shall be computed from the date of the judgment, except for FY 2025-26, which shall be as per regular return filing requirements.
  • The Court clarified that the petitioner remains fully liable to pay all pending arrears of tax, interest, penalty, and late fees, deciding the matter in favor of the assessee.
Key Takeaways
  • Service of SCN is Mandatory: Cancellation of GST registration without serving a show cause notice violates natural justice and renders the cancellation order legally invalid.
  • Conditional Restoration of Registration: Courts may restore cancelled GST registrations on the condition that the taxpayer clears all pending compliance obligations (filing past returns) within a strict timeframe.
  • Tax Liabilities Maintained: Setting aside a procedural cancellation order does not absolve the taxpayer of its underlying statutory liabilities, including taxes, interest, penalties, and late fees.
HIGH COURT OF GAUHATI
Nizora Projects (P.) Ltd.
v.
Union of India
DEVASHIS BARUAH, J.
WP(C) No. 4802 of 2026
SEPTEMBER  7, 2026
A. Khanikar, Adv. for the Petitioner. S. Chakraborty, CGC and S. Chetia, SC for the Respondent.
JUDGMENT
1. Heard Mr. A. Khanikar, the learned counsel appearing on behalf of the Petitioner. Mr. S. Chakraborty, the learned CGC appears on behalf of the Respondent Nos.1 and Mr. S. Chetia, the learned counsel appears on behalf of the Respondent Nos.2 to 4.
2. The Petitioner herein is aggrieved by the cancellation of its GST registration in terms with Section 29 of the Central Goods and Services Tax Act, 2017 (for short, ‘the CGST Act of 2017’). The Petitioner, thereupon, filed an application 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 revocation application had elapsed. It is under such circumstances the Petitioner, therefore, has approached this Court by filing the instant writ petition.
3. The materials on record reveal that the Petitioner herein is a Private Limited Company having GST No.18AAICNI229PIZ0 dated 14.04.2022 and is engaged in the business of constructions, contract and supply and is represented by its Managing Director Mazeharul Islam and is a registered Assessee under the Central Goods and Services Tax Act, 2017 (for short, ‘CGST Act of 2017’)/Assam Goods & Services Tax Act, 2017 (for short, ‘the AGST Act of 2017). The Petitioner has obtained a registration under the CGST Act of 2017 and was provided with the Unique ID bearing GST Registration No.18AAICNI229PIZ0.
4. It is the allegation of the Petitioner that the Respondent Authorities without issuance of any Show Cause Notice, GST registration of the Petitioner has been cancelled vide the Reference No.ZA1808250106498 dated 12.08.2025 wherein there was a reference of issuance of Show Cause Notice dated 07.07.2025 which the Petitioner did not received.
5. Mr. A. Khanikar, the learned counsel appearing on behalf of the Petitioner submitted that the Petitioner was not well conversant with the provisions of GST online portal and as the Petitioner did not receive the Show Cause Notice, the Petitioner failed to update the GST returns. It is submitted by the learned counsel for the Petitioner that the order of GST cancellation dated 12.08.2025 is not at all sustainable in as much as the contravention of Section 29(2)(C) of the GST Act, Rule 21 & 23 of the GST Rules as well as violation of Natural Justice.
6. The record also reveals that the Petitioner, thereupon, could not file an application seeking revocation of the cancellation of the registration due to lapse of time. 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 Gau 1429.
7. It is the opinion of this Court that similar directions which have been passed at paragraph No.50 of the said judgment can be passed in the instant proceedings. Accordingly, the instant writ petition, therefore, stands disposed of with the following observations and directions:-
(i) The order of cancellation of registration dated 12.08.2025 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 judgment, 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.
8. With the above, the instant writ petition stands disposed of.