GST Authorities empowered to Drop Cancellation Proceedings on Intimation of Compliance of Payment Dues: Gauhati HC [Read Order]
The Court held that cancellation of registration carries severe civil consequences, and in cases where compliance has been ensured post-facto, the empowered officer must consider the request for restoration.
![GST Authorities empowered to Drop Cancellation Proceedings on Intimation of Compliance of Payment Dues: Gauhati HC [Read Order]](https://images.taxscan.in/h-upload/2025/07/31/2071378-payment-dues-taxscan.webp "GST Authorities empowered to Drop Cancellation Proceedings on Intimation of Compliance of Payment Dues: Gauhati HC [Read Order]")
While granting relief to taxpayer facing cancellation of GST registration due to non-filing of returns, the Gauhati High Court has clarified that GST authorities are well within their powers to drop such proceedings if the taxpayer furnishes pending returns and clears all dues, including applicable interest and late fees. The petitioner, a proprietor running “M/s J. P....
While granting relief to taxpayer facing cancellation of GST registration due to non-filing of returns, the Gauhati High Court has clarified that GST authorities are well within their powers to drop such proceedings if the taxpayer furnishes pending returns and clears all dues, including applicable interest and late fees.
The petitioner, a proprietor running “M/s J. P. Enterprise,” challenged the cancellation of her GST registration on the ground of non-filing of returns for more than six months. She was served with a show-cause notice under Rule 22(1) of the CGST Rules, 2017, but failed to respond in time due to unfamiliarity with the online portal. By the time she accessed the notice, the cancellation order had already been passed on June 2, 2023.
How to Compute Income from Salary with Tax Planning, Click Here
Subsequently, the petitioner updated her returns up to March 2023 and discharged all pending GST liabilities. However, her attempt to file a revocation application was blocked by the portal, which displayed a message indicating that the statutory deadline of 270 days had lapsed.
The court observed that as per the proviso to Rule 22(4) of the CGST Rules, 2017, if a taxpayer, after receiving a cancellation notice under Section 29(2)(c), furnishes all pending returns and clears all dues, the proper officer is empowered to drop the cancellation proceedings and issue an order in Form GST REG-20.
Want a deeper insight into the Income Tax Bill, 2025? Click here
Justice N. Unnikrishnan Nair said that “this Court is of the considered view 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 so empowered, has the authority and jurisdiction to drop the proceedings and pass an appropriate order in the prescribed Form.”
The Court further held that cancellation of registration carries severe civil consequences, and in cases where compliance has been ensured post-facto, the empowered officer must consider the request for restoration.
Accordingly, the petitioner was directed to approach the proper authority within two months. Upon such compliance, the authority is bound to consider restoration of registration and issue appropriate orders within 60 days of receiving the application.
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
