The Gauhati High Court (Itanagar Bench) has directed the Central Goods and Services Tax (CGST) authorities to restore a cancelled GST registration despite the expiry of the statutory period for seeking revocation. 

The bench of Justice Kardak Ete has observed that once the taxpayer clears all outstanding statutory dues within the prescribed time, the authorities must revoke the cancellation order and restore the GST registration. 

The petitioner/assessee was carrying on business through a proprietary concern engaged in steel and iron fabrication, brick manufacturing, auto spare parts, and government supply contracts. The business was registered under the Goods and Services Tax Act, 2017 with effect from September 14, 2019. 

According to the petitioner, severe financial difficulties forced the business to cease operations, resulting in the failure to file GST returns from March 2021 onwards. Consequently, the GST department issued a show cause notice dated January 14, 2023 on the ground that returns had not been furnished continuously for more than six months. Simultaneously, the petitioner’s GST registration was suspended pending further proceedings. 

The petitioner explained that GST compliances had earlier been managed through GST practitioners and Chartered Accountants. As he did not regularly access the GST portal or his registered email account, he remained unaware of the show cause notice and therefore could neither submit a reply nor regularise the pending returns before the registration was cancelled on May 27, 2023. 

Before the High Court, the petitioner submitted that although he intended to clear all tax liabilities, he was legally prevented from doing so through the normal statutory mechanism.

It was argued that the statutory period available for filing an application seeking revocation of cancellation had already expired. Further, because of restrictions on the GST portal that prevent filing of returns beyond three years from the due date, the petitioner could no longer upload the pending returns or discharge the outstanding tax liability electronically. As a result, despite his willingness to comply with the law, he was left without any effective statutory remedy. 

The petitioner relied upon an earlier decision of the Gauhati High Court dated April 29, 2025 in Rakhe Achi v. Union of India & Others, wherein the Court had granted similar relief by directing restoration of GST registration subject to payment of all statutory dues.

During the hearing, counsel representing the Union of India as well as the CGST authorities fairly conceded that the controversy involved in the present case was identical to the issue already decided in the earlier judgment and that the petition could be disposed of on similar terms. 

After examining the submissions of both sides and considering the earlier precedent, Justice Kardak Ete observed that the petitioner’s case was squarely covered by the decision rendered in Rakhe Achi.

The Court noted that the petitioner’s GST registration had been cancelled solely on account of non-filing of returns. At the same time, the cancellation order itself made it clear that cancellation of registration did not extinguish the taxpayer’s liability to pay taxes, interest, penalty or any other statutory dues payable under the GST law. 

Recognising that the petitioner was prepared to clear all outstanding liabilities and that denial of restoration would permanently prevent him from regularising his tax affairs, the Court held that the petitioner deserved the same relief that had already been granted in the earlier case.

Allowing the writ petition, the High Court directed the GST authorities to follow a structured procedure for restoring the registration.

The Superintendent of CGST, Naharlagun Zone-I, Itanagar Range has been directed to intimate the petitioner regarding the total statutory outstanding dues payable till the date of cancellation, including any applicable tax, interest, penalty or fine required for restoration of the GST registration.

Upon receiving such intimation, the petitioner has been directed to deposit the entire amount within 21 days.

The Court further directed that once proof of payment is submitted within the prescribed period, the CGST authorities shall pass an appropriate order revoking the cancellation order dated May 27, 2023 and restore the petitioner’s GST registration. 

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