The Gauhati High Court has provided relief to a taxpayer whose GST registration was cancelled due to continuous non-filing of returns for over six months.
The bench of Justice Sanjay Kumar Medhi observed that if all pending tax dues along with interest and late fees are paid, authorities are empowered to revoke the cancellation under GST law.
The bench acknowledged the seriousness of registration cancellation, stating it carries “serious civil consequences.” Rule 22(4) of the CGST Rules, 2017 allows a taxpayer to regularize pending compliance and seek restoration, even after cancellation under Section 29(2)(c) of the Act.
The Court cited precedent from a similar case (Sanjoy Nath v. Union of India, WP(C) No. 6366/2023) and directed the petitioner to approach the competent officer within two months. If Borah complies with all statutory requirements, including payment of outstanding taxes, interest, and late fees, the officer is to consider his application for restoration and decide within 60 days.
The case involved petitioner Dipjyoti Borah, a sole proprietor, who challenged the cancellation of his GST registration by the Assistant Commissioner of State Tax, Guwahat. The cancellation was issued after the petitioner failed to respond to a show cause notice served on May 4, 2022.
Borah contended that he had missed the notice and could not respond in time due to financial hardships and unfamiliarity with the online system, particularly during the COVID-19 crisis. Later, he updated all pending returns up to June 2022 and paid the applicable dues, but was unable to apply for revocation as the 270-day statutory limit for seeking restoration had expired.
The Court clarified that the limitation period under Section 73(10) of the CGST Act would begin from the date of this order (except for FY 2024–25), ensuring protection from retrospective demands.
The court disposed of the writ petition by providing that the petitioner shall approach the concerned authority within a period of 2 months from today seeking restoration of her GST registration. If the petitioner submits such an application and complies with all the requirements as provided in the proviso to sub-rule (4) of Rule 22 of the CGST Rules, 2017, the concerned authority shall consider the application of the petitioner for restoration of the GST registration and passed necessary orders in accordance with law. The process be completed expeditiously and preferably within an outer limit of 60 days from the date of receipt of the certified copy of this order.
Case Details
Case Title: Dipjyoti Borah Versus The State Of Assam And 2 Ors.
Case No.: Case No. : WP(C)/3926/2025
Date: 18.07.2025
Counsel For Petitioner: A K Gupta, R S Mishra
Counsel For Respondent: SC
