Facts of the Case

The petitioner, Adventurers Abode Tourism Private Limited, an event management assessee registered under CGST/AGST (GSTIN 18AAUCA6434B1ZL), was served a show cause notice dated 11.10.2023 for non-filing of GST returns for a continuous period of six months, warning of ex-parte decision if no reply was filed or hearing attended. No date for personal hearing was ever notified, and an order dated 22.04.2024 cancelled the registration under Section 29(2)(c) of the CGST Act. The petitioner explained personal difficulties prevented a timely reply, but had since updated pending returns (up to January 2023, as the portal allowed) and discharged all GST dues along with late fees and interest, expressing readiness to comply with the proviso to sub-rule (4) of Rule 22 of the CGST Rules.

Issues Involved

  1. Whether a taxpayer whose registration is cancelled under Section 29(2)(c) for non-filing of returns is entitled to restoration on furnishing pending returns and paying dues under the proviso to Rule 22(4).
  2. How the limitation period under Section 73(10) should be computed for tax periods spanning the intervening cancellation period.

Petitioner's Arguments

  • Due to personal difficulties, the reply to the show cause notice could not be submitted in time; no personal hearing date was ever notified before the order was uploaded.
  • The petitioner had since filed pending returns and discharged all GST dues, interest, and late fees, and was ready and willing to comply with all formalities under the proviso to Rule 22(4) of the CGST Rules.
  • Reliance was placed on an identical order dated 11.10.2023 in WP(C) No. 6366/2023 (Sanjoy Nath vs. Union of India), involving a similarly situated petitioner.

Respondent's Arguments

  • The respondents (CGST authorities) appeared through counsel; no specific dispute is recorded as to the petitioner's eligibility under Rule 22(4) once pending returns and dues were furnished.

Court Order / Findings

  • The Court examined Section 29(2)(c) and Rule 22 of the CGST Rules, noting that under the proviso to sub-rule (4), where a person ready to furnish all pending returns and make full payment of tax dues along with applicable interest and late fee, the Proper Officer can drop the proceedings and pass an order in Form GST REG-20.
  • Given the serious civil consequences of cancellation, the Court directed that the petitioner approach the officer within two months seeking restoration, and upon complying with all requirements under the proviso to Rule 22(4), the officer was directed to consider and restore the registration expeditiously.
  • The Court clarified that the period stipulated under Section 73(10) of the Central GST/State GST Act shall be computed from the date of the instant order (except for FY 2024-25, computed per Section 44), and that the petitioner remains liable for arrears of tax, penalty, interest, and late fees.

Important Clarification

  • Under the proviso to Rule 22(4) of the CGST Rules, a taxpayer whose registration was cancelled for non-filing of returns can secure restoration by furnishing all pending returns and paying tax dues, interest, and late fee in full — the Proper Officer then has authority to drop proceedings via Form GST REG-20.
  • Where restoration is directed after a period of cancellation, courts may specifically direct that Section 73(10) limitation for adjudicating tax periods be computed afresh from the date of the restoration order (except for the year covered by Section 44), to avoid technical limitation bars against the Department.

Sections Involved

  • Section 29(2)(c), CGST Act, 2017 — cancellation of registration for non-filing of returns for a continuous six-month period.
  • Rule 22, CGST Rules, 2017 — procedure for cancellation and restoration of registration.
  • Section 73(10), CGST Act, 2017 — limitation for passing an order determining tax.

Decision – In Favour of

Assessee. Restoration of registration was directed on compliance with Rule 22(4), with the Section 73(10) limitation period computed afresh from the date of the order.

Case Details

Court: Gauhati High Court
Case No.: WP(C)/5443/2025
Coram: Hon'ble Mr. Justice Sanjay Kumar Medhi
Date of Order: 15.09.2025

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