Gauhati High Court permits revival of GST registration cancelled for GSTR-3B default
Background of the writ petition
In Smti Bina Taipodia vs Union of India, the Gauhati High Court dealt with a challenge to the cancellation of a GST registration on account of non-filing of returns. The assessee was running a proprietorship concern under the name M/s Luknu Buchi Enterprises, located at Likabali in the Lower Siang District of Arunachal Pradesh, and was registered under the Goods and Services Tax Act, 2017 with GSTIN/UIN: 12CBPPT8479Q1ZC.
The Superintendent, CGST and SGST Department, Pasighat Range, Arunachal Pradesh, cancelled the assessee’s GST registration by order dated 29.05.2025, citing failure to file the necessary GST returns, particularly GSTR-3B. This led the assessee to approach the High Court under writ jurisdiction, seeking intervention against the cancellation order and consequential restoration of registration.
The writ petition was taken up at the motion stage itself, with consent of both sides, in view of similar matters already having been adjudicated by the same Court.
Chronology of events and cancellation of GST registration
GST registration and non-filing of returns
The assessee was duly registered under the Goods and Services Tax Act, 2017 and obligated to file periodic returns, including GSTR-3B. According to the department’s records, the assessee failed to submit the requisite returns for a continuous period, triggering possible action under Section 29(2)(c) of the Act read with Rule 22 of the CGST Rules, 2017.
Issuance of Show Cause Notice
On noticing the default in return filing, the department issued a Show Cause Notice dated 07.10.2024, calling upon the assessee to explain:
- Why GSTR-3B returns had not been furnished, and
- Why the GST registration should not be cancelled for such default.
The notice was issued under the mechanism laid down in Rule 22 of the CGST Rules, which governs the process for cancellation of GST registration. As per departmental records, there was no reply from the assessee within the prescribed time.
Cancellation order dated 29.05.2025
As no response was received to the Show Cause Notice, the Superintendent proceeded to cancel the GST registration through order dated 29.05.2025. The ground recorded was non-filing of returns and failure to answer the Show Cause Notice.
Consequently, the GSTIN/UIN: 12CBPPT8479Q1ZC stood cancelled, disabling the assessee from continuing regular taxable supplies under the GST regime, which carries significant civil and business repercussions.
Assessee’s submissions before the High Court
Non-receipt of Show Cause Notice
The learned counsel for the petitioner submitted that the assessee had not actually received the Show Cause Notice dated 07.10.2024. Owing to non-receipt, the assessee could not file any reply, nor seek time or clarification. It was stressed that the failure to respond was not wilful or deliberate non-cooperation.
No intention to evade tax
The assessee’s counsel emphasised that there was no mala fide intention to avoid payment of GST or to disobey the Goods and Services Tax Act, 2017. According to the submissions:
- The defaults in filing returns and paying tax within time stemmed from health-related difficulties faced by the assessee.
- There was no scheme to defraud revenue or suppress taxable transactions.
Subsequent payment of tax dues
The Court was informed that:
- The assessee had already cleared the outstanding GST liability on 23.04.2026.
- Returns that had remained pending were also filed.
- Penalty-related amounts were also deposited.
However, by the time the assessee approached the authorities for restoration of GST registration, the application was delayed beyond the period generally entertained by the department. Consequently, the authorities did not restore the registration on their own.
The assessee, therefore, sought judicial direction to enable restoration of GST registration, relying on earlier orders of the Gauhati High Court where similar relief had been granted in comparable situations.