Restoration of GST Registration Permitted on Fulfilling Return and Tax Dues

Case Title: Arun Dibrual v. Union of India
Court Name: Gauhati High Court
Petition No.: WP(C)/1856/2025
Date of Judgement: 09.04.2025
Relevant Sections: Section 29(2)(c), Section 39(1), Rule 22(4) of the CGST Rules, 2017
Category of Dispute: GST Registration Cancellation / Revocation

Facts of the Case

[Para 2–4]

• The petitioner, a registered GST assessee under the firm “Arun Dibrual”, failed to file returns for over six months.

• A show cause notice dated 12.03.2024 was issued, uploaded on the GST portal without specifying a date for personal hearing.

• Due to lack of technical knowledge and portal inaccessibility, the petitioner missed the deadline for filing a reply.

• Subsequently, his GST registration was cancelled by the Superintendent, CGST, Dibrugarh on 06.05.2024.

• Attempts to file revocation failed as the 270-day time limit had lapsed.

Questions in Consideration

[Para 5–6, 9]

1. Whether cancellation of GST registration for non-filing of returns for six months was valid.

2. Whether the petitioner can be allowed revocation despite the expiry of statutory period.

3. Whether restoration is permissible on fulfilment of tax obligations as per Rule 22(4) of CGST Rules.

Observation of the Court

[Para 10–12]

• The Court examined Rule 22(4) and noted that if the assessee files all pending returns and pays full tax dues with interest and late fee, the proceedings can be dropped.

• The cancellation of GST registration, having serious civil consequences, requires due compliance with the procedure.

• Reference was made to a similar precedent in Sanjoy Nath v. Union of India (W.P.(C) 6366/2023) where relief was granted.

Judgement of the Court

[Para 13–14]

• The writ petition was disposed of with liberty to the petitioner to apply for restoration within two months.

• Upon filing all pending returns and payment of tax dues (including penalty, interest, and late fees), the authority was directed to consider restoration in accordance with law.

• Period under Section 73(10) shall be computed from the date of the judgment, barring FY 2024–25.

Between Fine Lines

1. A GST registration cancelled under Section 29(2)(c) can be restored upon filing returns and clearing dues.

2. Delay in portal access or ignorance does not prevent future compliance opportunity.

3. The Court emphasized procedural fairness and natural justice in cancellation cases.

4. Taxpayers must remain vigilant on GST portal communications.

5. The judgment allows redemption opportunity beyond the statutory revocation period if dues are cleared.

Summary of Referred Cases

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