Facts of the Case

Infigon Ventures Private Limited's GST registration was cancelled with effect from 01.07.2024 for non-filing of returns, and its application for revocation of the cancellation was rejected by order dated 03.07.2025. The petitioner explained that oppression-and-mismanagement proceedings instituted by its Director before the NCLT, Calcutta, and the consequent appointment of a receiver, had prevented it from filing returns. The petitioner expressed willingness to keep the registration alive, file all pending returns, and pay applicable penalties under Section 39 of the CGST Act, relying on a coordinate Bench decision in M/s M.S. Rainbow Products vs. Commissioner of CGST (W.P.(C) 8964/2024). On notice, the Department's short affidavit confirmed no other proceedings or notices were pending against the petitioner.

Issues Involved

  1. Whether cancellation of GST registration solely for non-filing of returns under Rule 22(1) read with Rule 21A(2A) of the CGST Rules should be set aside where the assessee is willing to file all pending returns and pay dues.
  2. Whether restoration of registration can be conditioned on compliance within a fixed timeline.

Petitioner's Arguments

  • Non-filing of returns arose from NCLT proceedings and appointment of a receiver, not any intent to evade tax.
  • The petitioner was willing to file all requisite returns and pay applicable penalties/fines under the CGST Act and Rules.
  • The issue was covered by the Court's decision in M/s M.S. Rainbow Products vs. Commissioner of CGST.

Respondent's Arguments

  • The Department's short affidavit confirmed there were no other pending proceedings or notices against the petitioner, without further opposing restoration.

Court Order / Findings

  • Since the principal ground for cancellation was non-filing of returns from July 2024 onwards, the Court was inclined to set aside the cancellation.
  • The cancellation was set aside subject to the petitioner filing all pending returns and paying requisite taxes/penalties/fines within eight weeks.
  • The GST portal access was directed to be restored within one week, and the registration restored to its original number.

Important Clarification

  • Cancellation for non-filing of returns can be reversed where the default is explained by external, bona fide causes (such as NCLT-appointed receivership) and the taxpayer undertakes to cure the default by filing returns and clearing dues, subject to a court-fixed compliance timeline.
  • Restoration of registration in such cases is conditional, not absolute — non-compliance within the stipulated period would revive the cancellation.

Sections Involved

  • Section 39, CGST Act, 2017 — furnishing of returns.
  • Rule 21A, CGST Rules, 2017 — suspension and revocation of cancellation of registration.
  • Rule 22, CGST Rules, 2017 — procedure for cancellation of registration.

Decision – In Favour of

Assessee, conditional on compliance. Registration cancellation set aside subject to filing returns and paying dues within eight weeks.

Case Details

Court: High Court of Delhi at New Delhi
Case No.: W.P.(C) 10454/2025 & CM APPL. 43407/2025
Coram: Hon'ble Justice Prathiba M. Singh and Hon'ble Justice Shail Jain
Date of Order: 05.08.2025

Link to Download the Order

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