The Gauhati High Court has directed the GST department to consider restoring the cancelled registration of a taxpayer who failed to file returns for six consecutive months but is now willing to clear all dues and meet procedural requirements.
The bench of Justice Sanjay Kumar Medhi acknowledged the petitioner’s readiness to comply with Rule 22(4) of the CGST Rules. Rule 22(4) of the CGST Rules allows the cancellation process to be dropped if the taxpayer files all pending returns and clears dues.
The petitioner/assessee, Manish Dugar is a proprietor of M/s Siddhi Vinayak Furnishing, whose GST registration was cancelled by the Nagaon-5, II-D Range of the Central Goods and Services Tax (CGST) department through an order dated April 21, 2024. The cancellation followed a show cause notice issued on February 3, 2023, due to non-filing of returns under Section 29(2)(c) of the CGST Act.
Mr. Dugar contended that he was unfamiliar with the online GST portal procedures and could not respond to the notice or attend the personal hearing. By the time he attempted compliance, the order had already been uploaded.
Subsequently, the petitioner discharged all GST dues along with interest and late fees and updated returns up to March 2023. However, his application for revocation of cancellation was rejected by the system as the 270-day statutory window had expired.
The court noted that cancellation of GST registration has “serious civil consequences” and relied on a similar precedent (Sanjoy Nath vs Union of India). It held that the empowered officer may drop the cancellation proceedings if the petitioner now meets all conditions and applies for restoration within two months.
The Court instructed the GST department to consider the restoration request and take appropriate action in accordance with law. It also clarified that the limitation period under Section 73(10) of the CGST Act shall now be computed from the date of this order, except for the financial year 2024-25.
Case Details
Case Title: Manish Dugar Versus The Union Of India
Case No.: WP(C)/4348/2025
Date: 04.08.2025
Counsel For Petitioner: A K Gupta, Mr. R S Mishra
Counsel For Respondent: DY.S.G.I., SC, GST
