Gauhati High Court Upholds GST Registration Restoration Where Pending Returns Filed and Dues Cleared — Kipa Tapu Vs Union of India and 4 Ors
Background and Overview
The Gauhati High Court recently adjudicated a writ petition filed by a proprietor whose GST registration had been cancelled owing to non-filing of returns for a continuous period of six months. The case raises significant questions around the interplay between Section 29(2)(c) of the Central Goods and Services Tax Act, 2017, and the proviso to Rule 22(4) of the Central Goods and Services Tax Rules, 2017, specifically in situations where an assessee has cleared all pending dues but finds himself procedurally locked out of the revocation mechanism because the statutory timeline has elapsed.
The decision is noteworthy for all GST-registered assessees, particularly small proprietors who may lack familiarity with online compliance procedures and consequently find themselves in a spiral of escalating non-compliance. The Court's intervention provides a meaningful and legally sound pathway for such assessees to seek restoration of their GST registrations, notwithstanding the expiry of the 270-day revocation window.
Facts of the Case
The Assessee and His Registration
The petitioner, Kipa Tapu, operated a proprietorship business under the trade name "TOSD Enterprise" and held GST registration No. 12BRIPT2656K1ZG under both the Central Goods and Services Tax (CGST) Act, 2017 and the Arunachal Pradesh Goods and Services Tax (AGST) Act, 2017.
Issuance of Show Cause Notice
The GST authorities issued Show Cause Notice bearing reference No. ZA1204250013655, dated 16th April 2025, citing continuous non-filing of GST returns for a period of six months. The notice gave the assessee 30 days to submit a written reply and additionally notified him that failure to either reply or attend the scheduled personal hearing would result in an ex-parte determination based on available records.
Cancellation Order
Since no reply was filed and the assessee did not appear for personal hearing, the respondent No. 3 proceeded to pass the cancellation order dated 30th May 2025, thereby cancelling the assessee's GST registration under Section 29(2)(c) of the CGST Act, 2017, on the ground of non-furnishing of returns for six months or more.
Reason for Non-Compliance
The assessee contended before the Court that he was not conversant with the online GST portal procedures and was consequently unable to access the system to submit any response to the show cause notice within the prescribed time. It was only when his business operations encountered obstruction that he consulted his Tax Consultant and came to learn of the notice. By that point, both the time for filing a reply and the date of personal hearing had already passed, and the cancellation order had been uploaded on the portal.
Steps Taken by the Assessee After Cancellation
Filing of Pending Returns and Payment of Dues
After becoming aware of the cancellation, the assessee took corrective measures and updated all pending GST returns up to March 2025, as permitted by the GST portal. Simultaneously, he discharged all outstanding GST liabilities including late fees and applicable interest.
Failure to File Revocation Application
Having cleared all dues and filed all pending returns, the assessee attempted to submit a formal application for revocation of the cancellation. However, the GST portal displayed a message stating:
"Timeline of 270 days from the date of cancellation order provided to taxpayer to file application for revocation of cancellation is expired."
Accordingly, the revocation application could not be filed, leaving the assessee with no administrative remedy and compelling him to approach the High Court by way of writ petition.