Restoration Permitted for GST Registration Cancelled for Non-Filing of Returns

Case Title: Pawan Kumar Singh v. Union of India & Ors.
Court: Gauhati High Court
Petition No.: WP(C)/310/2025
Relevant Section: Section 29(2)(c) of the CGST Act, 2017; Rule 22(4) of the CGST Rules, 2017
Category of Dispute: GST Registration Cancellation
Date of Judgement: 24.01.2025
Judge: Hon’ble Mr. Justice Manish Choudhury

Facts of the Case

[Para 2–2.2]
The petitioner, a sole proprietor of M/s Saffron Restaurant, obtained GST registration on 17.05.2018. On 05.09.2023, a show cause notice was uploaded on the GST portal citing non-filing of returns for over six months under Section 29(2)(c). As the petitioner failed to notice the notice due to its digital upload, he didn’t respond. Consequently, the registration was cancelled on 21.11.2023.

Question(s) in Consideration

[Para 6–7]
Whether the GST registration cancelled under Section 29(2)(c) for non-filing of returns could be restored if the petitioner agrees to file all pending returns and clear outstanding dues as per the proviso to Rule 22(4) of the CGST Rules.

Observations of the Court

[Para 3–6]

• The Court acknowledged the mandatory requirement under Section 39 for filing monthly returns.

• It considered the petitioner’s willingness to comply with the proviso to Rule 22(4) by furnishing pending returns and making full tax payments with interest and late fee.

• The Court noted that cancellation of registration results in serious civil consequences and cited the precedent in Sanjoy Nath v. Union of India (W.P.(C) No. 6366/2023) to support its stance.

Judgment of the Court

[Para 7]
The Court disposed of the writ petition with liberty to the petitioner to approach the GST authority within two months. Upon fulfilling the requirements of Rule 22(4) proviso—filing pending returns and clearing tax dues—the authority is directed to restore the GST registration in accordance with law, expeditiously.

Between Fine Lines

1. GST registration can be restored if cancellation was due to non-filing of returns.

2. Restoration is possible if all pending returns are filed and dues cleared.

3. Mere non-response to digitally uploaded notice isn’t sufficient to deny restoration.

4. Rule 22(4) provides a remedial opportunity to taxpayers.

5. Court favors a liberal approach when taxpayers show willingness to comply.

Summary of Referred Cases

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