Gauhati High Court Permits Restoration of Cancelled GST Registration on Fulfilling Statutory Conditions
Background of the Case
The matter before the Gauhati High Court in Pratik Raj Gautam Vs Union of India And 3 Ors arose from the cancellation of a GST registration on the ground of prolonged non-filing of returns. The assessee, a sole proprietor running a business under the trade name “M/S Gautam Enterprise”, was registered under the Central Goods and Services Tax (CGST) Act, 2017 and the Assam Goods and Services Tax (AGST) Act, 2017 with registration No. 18APUPG1878B2ZM.
Due to failure to file GST returns for a continuous period of six months, the department initiated cancellation proceedings under Section 29(2)(c) of the CGST/AGST Act, 2017. This ultimately led to an order cancelling the assessee’s GST registration, which was later challenged before the High Court by way of a writ petition.
Chronology of Events
Issue of Show Cause Notice
- A show cause notice bearing reference No. ZA180424006177P dated 05.04.2024 was issued to the assessee.
- The notice:
- Called upon the assessee to furnish a reply within 30 days from the date of service.
- Fixed a date for personal hearing on 03.05.2024 at 11:00 a.m.
- Clearly stated that non-submission of reply or non-appearance would lead to an ex parte decision based on available records.
Cancellation Order
Subsequently, by order dated 13.05.2024, the Superintendent, Range-II-C, Guwahati, Assam, passed an order cancelling the GST registration of the assessee. The cancellation order was passed without assigning any reasons in the body of the order.
Assessee’s Explanation and Hardship
The assessee contended before the Court that:
- Due to acute financial difficulties in the business, he was unable to:
- Regularly access the GST portal.
- File the monthly returns on time.
- Respond to the show cause notice within the permitted period.
- By the time he became aware of the notice, the deadline to reply had already expired and the cancellation order had been uploaded on the portal.
Dismissal of Appeal
The assessee preferred an appeal against the cancellation order. However, the appellate authority dismissed the appeal by an order dated 19.02.2026, thereby affirming the cancellation of GST registration.
Subsequent Compliance by the Assessee
Filing of Pending Returns and Payment of Dues
After the cancellation and dismissal of the appeal, the assessee undertook steps to regularize his GST compliance. He submitted that:
- All pending GST returns had been filed up to the month of April 2024, to the extent allowed by the GST portal.
- While updating these returns, he paid the entire outstanding GST liability along with applicable late fees and interest.
Inability to File Revocation Application
Having made good the defaults, the assessee attempted to seek restoration of his registration by filing an application for revocation of cancellation through the GST portal.