Gauhati High Court Directs Restoration of GST Registration Post 270-Day Expiry Upon Clearance of Pending Returns

The cancellation of a business's indirect tax registration carries severe civil and economic consequences, effectively halting its operational capabilities. In a significant judicial intervention, the Gauhati High Court, in the matter of Panchatantra Tours And Travels Vs Union of India, addressed the rigid procedural timelines associated with the revocation of such cancellations. The Court evaluated whether an assessee, who had inadvertently missed the statutory 270-day window to apply for revocation but had subsequently cleared all statutory dues, could be granted equitable relief.

This judgment underscores the delicate balance between strict statutory compliance under the CGST Act, 2017 and the principles of natural justice, especially when an assessee demonstrates a bona fide intention to rectify past defaults by discharging all tax liabilities, late fees, and interest.

Factual Matrix of the Case

Background of the Assessee

The dispute originated with a sole proprietorship operating under the trade moniker "Panchatantra Tours & Travels". The business was a registered assessee governed by the provisions of the CGST Act, 2017 and the AGST Act, 2017, holding the specific registration number 18AEOPD9468F2Z0.

Due to severe financial constraints, the assessee defaulted on statutory compliance, specifically failing to upload periodic returns for a continuous stretch exceeding six months. This continuous default triggered the administrative mechanisms of the tax department.

Issuance of Show Cause Notice and Ex-Parte Cancellation

Taking cognizance of the non-compliance, the proper officer issued a formal show cause notice bearing reference No. ZA181123009779D on 13.11.2023. The administrative directive required the assessee to:

  1. Submit a detailed response within a period of 30 days from the date of receiving the notice.
  2. Make a physical appearance for a personal hearing scheduled for 11.12.2023.

The notice explicitly warned that failure to engage with the departmental proceedings would compel the authorities to adjudicate the matter ex-parte based on the existing material on record. Due to ongoing financial distress, the assessee failed to access the digital portal, missed the deadline for the reply, and could not attend the personal hearing. Consequently, the jurisdictional Superintendent (Guwahati D-5) issued a definitive order on 15.04.2024, terminating the assessee's registration without detailing any specific rationale beyond the initial default.