Delay in Filing for Revocation of Cancellation of Registration: Gauhati HC Directs Liability of JV to Make Payment of Arrears [Read Order]

The Gauhati High Court directed that the joint venture under the name “Sanjay-Rajendra-JV” is liable to pay arrears as there has been a delay in filing for revocation of cancellation of registration.

Due to non-filing of GST returns for a continuous period of six months, the petitioner was served with a show cause notice (SCN) dated 13.08.2024 asking the petitioner to reply within 30 days and to appear for personal hearing on 10.09.2024.

The Superintendent, Mangaldai Range Assam, cancelled the GST registration of the petitioner/JV on 21.03.2025. The petitioner could not file the necessary application seeking revocation of GST cancellation as time limit prescribed was elapsed.

The counsel for the petitioner contended that miscommunication between the petitioner and their Tax Consultant resulted in the petitioner not being able to file return nor visit the GST portal to reply to the SCN. Further, it was contended that the petitioner had updated all pending returns as allowed by the GST portal and discharged all GST dues along with late fees and interest.

The counsel promises compliance of Rule 22(4) of the CGST Rules, 2017. The sub-section allows the proper officer to drop the proceedings for cancellation of registration and the proviso makes a reference to Section 29 of the GST Act which also empowers cancellation.

The tribunal observes that the Rule allows for revocation of cancellation if the person who has been issued the SCN is ready and willing to furnish all the pending returns and full payments of the tax along with applicable interest and late fee.

The writ petition was disposed of by providing that the petitioner approaches the concerned authority within two months for seeking restoration of GST registration, after complying with Rule 22.

Justice Sanjay Kumar Medhi held the petitioner liable for payments of tax, penalty, interest and late fees, drawing attention to Sections 73(10) and 44 and disposed of the present petition.

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