Gauhati HC Allows to seek Restoration of Cancelled GST Registration on Payment of Full tax and Filing of Pending Returns [Read Order]

The Gauhati High Court allowed seeking the restoration of cancelled GST registration on payment of full tax and filing of pending returns.

Riju Moni Gogoi, the petitioner, was carrying out her business under the name & style, “Rijumoni Gogoi”. She is the sole proprietor and is an Assesee registered under the Central Goods and Services Tax (CGST) Act, 2017/Assam Goods and Services Tax (AGST) Act, 2017. Because of non-filing of GST returns for a continuous period of six months, the petitioner was served with a show cause notice asking her to furnish reply to the aforesaid notice within a period of 30 (thirty) days from the date of service of notice.

It was mentioned in the aforesaid show cause notice that if the petitioner fails to furnish a reply within the stipulated date or fails to appear for personal hearing on the appointed date and time, the case will be decided ex-parte on the basis of the available records and on merits. However, no date for personal hearing was ever notified. Thereafter, the impugned order dated 17.03.2022 was passed by the Superintendent, Sivasagar-5, whereby the petitioner’s GST registration has been cancelled for not furnishing returns for a continuous period of 6 (six) or more months.

The petitioner contended that she was not conversant with the online procedure and therefore, she could not visit the GST portal and could not submit any reply to the said show cause notice in time. It is further contended that when the petitioner came across the said notice, the time for filing reply and attending the hearing was already over and order had also been uploaded in the portal.

The petitioner further contended that after she updated all her pending returns upto the month of March, 2022 as allowed by the GST portal and while updating her returns, the petitioner has also discharged all her GST dues along with her late fees and interest.

The petitioner tried to file the necessary application seeking revocation of GST cancellation, however, the same could not be filed as the time limit prescribed for filing of revocation application was elapsed and a message was displayed in the screen “timeline of 270 days from the date of cancellation order provided to taxpayer to file application for revocation of cancellation is expired.”

Counsel for the petitioner has submitted that the petitioner is ready and willing to comply with all the formalities required as per proviso to sub-rule(4) of Rule 22 of the CGST Rules, 2017.

The GST registration of the petitioner has been cancelled under Section 29(2)(c) of the Act, for the reason that the petitioner did not submit returns for a period of 6 (six) months. The court viewed that in the event the petitioner approaches the officer, duly empowered, by furnishing all the pending returns and make full payment of the tax dues, along with applicable interest and late fee, the officer duly empowered, may consider to drop the proceedings and pass an appropriate order in the prescribed Form.

A single bench of Justice Sanjay Kumar Medhi disposed of the writ petition by providing that the petitioner shall approach the concerned authority within a period of 2 (two) months from today seeking restoration of her GST registration. If the petitioner submitted such an application and complies with all the requirements as provided in the proviso to Rule 22 (4) of the Rules, the concerned authority shall consider the application of the petitioner for restoration of her GST registration in accordance with law and shall take necessary steps for restoration of GST registration of the petitioner as expeditiously as possible.

It is needless to say that the period as stipulated under Section 73 (10) of theCentral GST Act/State GST Act shall be computed from the date of the instant order, except for the financial year 2024-25, which shall be as per Section 44 of the Central GST Act/State GST Act. The petitioner herein would also be liable to make payment of arrears i.e. tax, penalty, interest and late fees.

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