Guwahati High Court Allows GST Registration Restoration: Smti Ivy Dutta vs Union of India & Ors
Case Overview
The Guwahati High Court recently adjudicated a writ petition filed by a proprietress engaged in the supply of office stationery, whose GST registration had been cancelled owing to prolonged non-filing of returns. The matter raised important questions around the procedural rights of an assessee facing cancellation under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017, and the remedial pathway available under the proviso to Rule 22(4) of the CGST Rules, 2017.
Background and Facts of the Case
The petitioner, Smti Ivy Dutta, operated a proprietorship firm known as M/S Associated Commercial Friends, carrying on the business of supplying office stationery from its registered premises at Duliajan, Kamalabari Road, District Dibrugarh, Assam. The firm held a valid GST registration bearing No. 18AYKPD8297Q1ZC under both the Central Goods and Services Tax Act, 2017 and the Assam Goods and Services Tax Act, 2017.
Trigger for Show Cause Notice
The petitioner's GST registration came under scrutiny when she failed to file GST returns for a continuous period of six months, which constitutes a ground for cancellation under Section 29(2)(c) of the CGST Act. Consequently, the Superintendent, CGST, Naharkatia Range issued a Show Cause Notice dated 09.03.2022, suspending the registration with effect from the same date and directing her to:
- Submit a reply within seven days of service of the notice
- Appear personally before the authority on 16.03.2022
- Understand that non-compliance would result in the matter being decided on an ex-parte basis
Cancellation and Subsequent Steps
Since no reply was received from the petitioner, her GST registration was formally cancelled by an order dated 30.03.2022. The petitioner attributed this default to serious health complications that had impaired her ability to manage her business operations and meet statutory compliance timelines.
She subsequently filed an appeal before the Additional Commissioner (Appeals), CGST, C.Ex. & Customs, Guwahati, which was registered as Appeal No. 178/GHY(A)/ADC/GSTP/DIB/2026. However, this appeal was rejected vide order dated 29.04.2026. When she attempted to pursue revocation of the cancellation through a fresh application, she was confronted with the expiry of the prescribed limitation period, rendering the filing of such an application impermissible.
Legal Contentions Raised
Petitioner's Submissions
Counsel for the petitioner advanced the following arguments before the High Court:
- The non-filing of returns and the failure to respond to the show cause notice were attributable entirely to the petitioner's deteriorating health condition and not to any wilful or deliberate intent to evade compliance.
- The petitioner expressed an unconditional willingness to furnish all pending GST returns and satisfy all requirements stipulated under the proviso to
Rule 22(4)of the CGST Rules, 2017. - Strong reliance was placed on the judgment and order dated 17.10.2025 passed by a Coordinate Bench of the Guwahati High Court in Dhirghat Hardware Stores & Anr. v. Union of India & 3 Ors., WP(C) No. 5944/2025, which addressed a substantially similar factual and legal matrix and where relief was granted to the petitioners therein.
Respondents' Position
The learned Standing Counsel for CGST fairly and candidly acknowledged before the Court that the decision in Dhirghat Hardware Stores (supra) had been rendered on facts and law closely mirroring the present case, and that the said precedent would appropriately govern the outcome of the present writ petition as well.
Legal Framework Examined
Section 29(2)(c) of the CGST Act, 2017
This provision empowers a duly authorised officer to cancel the GST registration of a registered person from such date, including any retrospective date, as the officer deems appropriate, where the registered person has not furnished returns for a continuous period of six months.