Gauhati HC Quashes GST Cancellation, Orders Company to File All Pending Returns Within 30 Days [Read Order]

In a recent ruling Gauhati High Court has quashed the cancellation of GST registration, directed the company to file all pending returns within 30 days of the judgment and to clear arrears, including tax, penalty, interest, and late fees, while clarifying that the limitation under Section 73(10) of the CGST Act will run from the date of the order.

The writ petition was filed by the petitioner, Choudhury Tea and Agro Industries Pvt. Ltd aggrieved by the cancellation of its registration in terms of Section 29 of the CentralGoods and Services Tax Act, 2017 and filed a revocation application on 10.11.2021, but the same was rejected on 18.11.2022.

The petitioner argued that it was registered under companies act 2013, and registration shall stand suspended from 02.09.2021. Also claimed it did not receive the show cause notice and did not file any reply.

Mr A Goyal, the learned counsel appearing on behalf of the petitioner and Mr S. Chetia, the learned counsel who appears on behalf of the respondents.

The high court observed that the issue was no longer res integra, relying on the Supreme Court’s decision in Motaleb Bhuyan v. State of Assam and ors (2025), which emphasised that cancellation should not be absolute if taxpayers are willing to comply

It is also pointed out that it is seen from the order dated 07.10.2021 that the petitioner's reply dated 03.10.2021 was found to be not satisfactory and, accordingly, the petitioner's registration was cancelled on the ground that the petitioner did not file the due returns since October 2020. The record also reveals that the petitioner herein had sought revocation of the cancellation of the registration by filing an application, which was rejected

The bench Justice Devashis Barua held that the cancellation order dated 07.10.2021 was set aside and quashed. Also directed the petitioner to file all pending returns from October 2020 to date within 30 days from the date of the instant order.

The high court further clarified that the computation of limitation under Section 73(10) of the CGST Act would begin from the date of this judgment, except for FY 2025–26, which would follow Section 44 and made it clear that the petitioner is liable to pay arrears, including tax, penalty, interest and late fees.

Accordingly, the writ petition was disposed of.

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