Delhi HC Orders Restoration of Cancelled GST Registration of Garment Exporter Citing COVID Illness, Portal Access Issues

The Delhi High Court has granted major relief to a garment exporter by ordering the restoration of a GST registration that had been cancelled more than three years ago due to non-filing of returns. The bench of Justice Prathiba M. Singh and Justice Mini Pushkarna held that the circumstances surrounding the case warranted extraordinary judicial intervention, particularly in view of medical hardship during the COVID-19 pandemic and prolonged technical difficulties in accessing the GST portal. The cancellation originated from a show-cause notice issued in September 2021 under Section 39 of the Central Goods and Services Tax Act, 2017, alleging that the taxpayer had failed to file GST returns for six consecutive months. As no response was submitted, the GST department cancelled the registration on October 22, 2021, rendering the business unable to legally continue operations, issue tax invoices, or claim input tax credit. The registration remained suspended for over three years. The petitioner submitted before the Court that he had suffered serious illness during the COVID period and was unable to maintain day-to-day compliance. The situation worsened when a dispute arose with his Chartered Accountant, who alone retained the login credentials for the GST portal. As a result, the petitioner was unable to access the portal, file returns, or respond to the show-cause notice. Multiple written representations to the GST department from December 2021 onward yielded no solution for nearly two years. In March 2023, the department finally issued new login credentials, but Portal access was only partially enabled. The petitioner was permitted to file returns only for limited periods and not for the entire default period, which prevented full compliance. Frustrated by repeated visits and lack of resolution, the taxpayer continued to seek administrative intervention but met with continued technical roadblocks. When he approached the appellate authority, the appeal was rejected on the ground that it was barred by limitation under Section 107 of the CGST Act. The GST department argued before the High Court that revocation beyond the statutory period was impermissible and relied upon earlier judicial decisions to contend that the writ petition should be dismissed. The High Court, however, took a humanitarian and practical view of the matter. It observed that although procedural delay is ordinarily not condoned, the facts of this case showed that the petitioner was a bona fide trader who intended to resume lawful business operations. The Court noted that cancellation of GST registration had effectively paralysed the petitioner’s business and that administrative rigidity in exceptional circumstances should not lead to irreversible commercial death. Allowing the petition, the Court directed the GST department to restore the registration within one week and issue fresh login credentials. It further ordered that the GST portal be fully enabled to allow filing of all pending returns along with applicable late fees and interest. If portal access remained impossible, the authorities were directed to accept physical filings. The petitioner was asked to appear personally before the Superintendent of CGST, Ward-49, North Commissionerate, on December 8, 2025, for completion of compliance formalities. The Court also directed that access to the electronic credit ledger be restored after payment of statutory dues. Importantly, the High Court permitted the GST department to issue appropriate notices if discrepancies are found after returns are filed and clarified that the statutory limitation period would not restrict initiation of proceedings since returns were being filed under court protection. Case Details Case Title: M/S EVES FASHION Versus UOI Case No.: W.P.(C) 17991/2025 Date: 29/11/2025 Counsel For Petitioner: Awadhsh Kumar Singh Counsel For Respondent: Akash Panwar Click Here To Read Order Read More: Citibank Over Credit Card Fraud | Delhi HC Orders Rs. 1 Lakh Compensation To Card Holder, RBI Reforms

Delhi HC Orders Restoration of Cancelled GST Registration of Garment Exporter Citing COVID Illness, Portal Access Issues

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