Facts of the Case

The petitioner, Ratan Kumar Halder, proprietor of M/S R.K. Trading Co. (GSTIN 18ABIPH0322D1ZA), was issued a show-cause notice dated 30.06.2021 for non-filing of GST returns for a continuous period of six months, without any personal hearing date being fixed. An order dated 09.07.2021 cancelled his registration without assigning reasons. The petitioner attributed the default to losses sustained during the Covid-19 pandemic, and claimed that by the time he became aware of the notice, the reply period had lapsed and the order had already been uploaded. He later updated all pending returns up to July 2021 and discharged the tax dues along with late fees and interest, but his revocation application could not be filed as the 270-day statutory window under the Rules had expired by then.

Issues Involved

  1. Whether a taxpayer whose GST registration was cancelled under Section 29(2)(c) for non-filing of returns, and who has since discharged all tax dues with interest and late fee, can still obtain restoration after the 270-day window for filing a revocation application has expired.

Petitioner's Arguments

  • The failure to reply to the show-cause notice was attributable to Covid-19-related business losses, not wilful default, and the notice itself did not fix any date for personal hearing.
  • Since recovering, the petitioner had voluntarily updated all pending returns and discharged all dues along with interest and late fee, and was ready to comply with the proviso to Rule 22(4) of the CGST Rules, 2017.

Respondent's Arguments

  • The Standing Counsel for the Finance and Taxation Department did not seriously contest the facts but placed on record the statutory scheme, including Rule 22 governing cancellation and its proviso permitting the proper officer to drop proceedings on full compliance, and cited a comparable precedent in Sanjoy Nath v. Union of India, WP(C) No. 6366/2023.

Court Order / Findings

  • The Court examined Rule 22 of the CGST Rules, 2017 in detail, noting that its proviso to sub-rule (4) empowers the proper officer to drop cancellation proceedings and pass an order in Form GST REG-20 where the person furnishes all pending returns and makes full payment of tax dues with interest and late fee.
  • Given that cancellation of registration entails serious civil consequences, the Court held that the petitioner should be permitted to approach the concerned officer, who would then have the authority and jurisdiction to consider restoration on compliance with the proviso to Rule 22(4), notwithstanding expiry of the ordinary revocation window.
  • The petitioner was directed to approach the authority within two months seeking restoration, with the entire process to be completed within an outer limit of 60 days of receipt of the order; time for computing limitation under Section 73(10) was directed to run afresh from the date of the order (except for FY 2024-25).
  • The writ petition was disposed of.

Important Clarification

  • Even after the 270-day window for filing a statutory revocation application under the CGST Rules has lapsed, courts can still direct the proper officer to exercise the power under the proviso to Rule 22(4) to drop cancellation proceedings and restore registration, on full compliance by the taxpayer.
  • Genuine hardship, such as pandemic-related disruption, coupled with subsequent full compliance (filing returns, paying tax, interest and late fee), is treated as sufficient ground for such restoration relief through writ jurisdiction.

Sections Involved

  • Section 29(2)(c), CGST/AGST Act, 2017 – cancellation of registration for non-filing of returns for a continuous specified period.
  • Rule 22, CGST Rules, 2017 – procedure for cancellation of registration and its proviso allowing dropping of proceedings on compliance.
  • Section 73(10), CGST Act, 2017 – limitation for passing orders on tax not paid/short paid.

Decision – In Favour of

The decision is in favour of the assessee, Ratan Kumar Halder — the writ petition was disposed of directing consideration of restoration of registration on full compliance.

Case Details

Gauhati High Court – WP(C)/7019/2025 – Coram: Hon'ble Mr. Justice Sanjay Kumar Medhi – Order dated 17.12.2025.

Link to Download the Order

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