Case Summary
Case Title: D.D. Construction v. Union of India & Ors.
Court: Gauhati High Court
Petition No.: WP(C)/4384/2025
Date of Judgment: 06.08.2025
Category of Dispute: GST Registration Cancellation – Non-filing of Returns
Relevant Provisions: Section 29(2)(c), Section 39(1), Section 73(10), Section 44 of the CGST Act, 2017; Rule 22 of CGST Rules, 2017
Facts (Paras 2–4)
The petitioner, D.D. Construction, a registered assessee under CGST and AGST Acts, failed to file GST returns for six consecutive months. A show cause notice was issued on 14.11.2023 under Section 29(2)(c) requiring compliance, but the petitioner did not respond. Consequently, the Superintendent, CGST, Naharkatia cancelled the registration on 20.02.2024. The petitioner attempted to file a revocation application but missed the statutory deadline, leading to the present writ petition.
Questions (Paras 5–7)
The issue before the Court was whether a taxpayer whose registration was cancelled under Section 29(2)(c) for non-filing of returns could still seek restoration by complying with the requirements under the proviso to Rule 22(4) of the CGST Rules, 2017.
Observations (Paras 6–10)
The Court noted that under Section 29(2)(c), officers have the power to cancel GST registration for non-filing of returns beyond six months. Rule 22 provides the procedure, and its proviso under sub-rule (4) permits dropping of proceedings if the taxpayer furnishes pending returns and clears tax, interest, and late fees. The Court relied on an earlier decision in Ansari Construction v. Union of India (WP(C) 2793/2025, decided on 26.05.2025), where similar relief was granted. Considering the civil consequences of cancellation, the Court stressed that the law provides a remedial window for taxpayers to regularize compliance.
Judgment (Paras 10–13)
The Court disposed of the writ petition directing that if the petitioner approaches the GST authority within two months, files all pending returns, and clears tax dues with interest and late fee, the officer shall restore the GST registration by passing an order in Form GST REG-20. The Court also clarified that limitation under Section 73(10) would run from the date of this judgment (except FY 2024–25 where Section 44 applies). The petitioner remains liable to pay arrears of tax, penalty, interest, and late fee.
Table of Cases Referred
| Case | Citation | Ratio / Verdict |
|---|---|---|
| Ansari Construction v. Union of India & Ors. | WP(C) 2793/2025, Gauhati HC (26.05.2025) | Restoration of GST registration permitted if taxpayer files pending returns and clears dues as per Rule 22(4) CGST Rules. |
Between Fine Lines
This ruling reinforces that GST registration cancellations for non-filing of returns are not irreversible. Taxpayers can still restore registration if they file pending returns and pay outstanding dues, provided they act promptly. It emphasizes the importance of compliance but also ensures fairness by offering a remedial path to avoid crippling business disruptions.
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