M/S ANANYA ENTERPRISE v. THE STATE OF ASSAM & ORS.

BEFORE HONOURABLE MR. JUSTICE N. UNNI KRISHNAN NAIR Date : Date: 03.09.2025 ORDER Heard Dr. A. Todi, learned counsel for the petitioner. Also heard Mr. B. Choudhury, learned Standing Counsel, Finance & Taxation Department, appearing for the respondent nos.1, 2 & 3.

The petitioner in the present proceeding has assailed an order dated 08.09.2023, by which its registration under the GST Act, 2017, was cancelled by the Assistant Commissioner of State Taxes, Guwahati-B2 i.e. the respondent no.2, herein, invoking the provisions of Section 29 of the Assam Goods and Services Tax Act, 2017.

As projected in the writ petition, the petitioner firm is a proprietorship firm dealing with scraps and had got itself registered under the provisions of the Assam Goods and Services Tax Act, 2017 vide Registration Certificate No.18CEWPG7526M1ZM, dated 20.12.2022, GST REG-06.

The respondent no.3, herein, has issued a show-cause notice to the petitioner for cancellation of its said registration and the petitioner was to submit his reply, thereto, within 30(thirty) days from the date of service of the notice and also appear before the authority designated on 05.09.2023. The registration of the petitioner was also suspended w.e.f.

08.08.2023. Thereafter, the competent authority proceeded to issue the impugned order dated 08.09.2023, whereby the GST registration of the petitioner was cancelled.

The petitioner further contended in the writ petition that the firm is involved in petty business and due to oversight, it was unable to file its GST returns for the period w.e.f. July 2023 to September 2023, within the due time. It was further projected that there was no intention on the part of the petitioner in causing delay of the compliance of the GST provisions, nor any intention to avoid payment of due taxes. Page No.# 3/5

The petitioner has further contended that being unaware of the show-cause notices issued and the order of cancellation, the petitioner firm could not file an application for revocation of the order of cancellation under Section 30, of the Assam Goods and Services Tax Act, 2017, or an appeal under Section 107, of the Assam Goods and Services Tax Act, 2017, within the period of limitation prescribed.

It is further projected that the petitioner had subsequently filed its NIL return in the month of August, 2024, in GSTR-1 and GSTR-3B, for the period w.e.f. July, 2023 to September 2023, and paid the due interest as applicable in the matter. However, after filing of the said NIL returns and the payment of interest, the prayer of the petitioner for restoration of its suspended registration was not entertained on the ground that the period of limitation for making such a prayer and appeal had expired.

Being aggrieved the petitioner had approached this Court by way of filing the present Writ Petition.

Dr. A. Todi, learned counsel for the petitioner, has submitted that the petitioner is ready and willing to comply with all formalities required as per the proviso to Sub Rule (4) of Rule 22 of the Central Goods and Services Tax Rules, 2017.

As per the provisions of Section 29(2)(c) of the Central Goods and Services Tax Rules, 2017; an officer, duly empowered, may cancel the GST registration of a person from such date, including any retrospective date, as he deems fit, where any registered person, has not furnished returns for a continuous period of 6(six) months. Rule 22 of the Central Goods and Services Tax Rules, 2017, has laid down the procedure for cancellation of the registration. The said Rule, being relevant, is extracted hereinbelow: “Rule 22: Cancellation of Registration (1) Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under Section 29, he shall issue a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled.

It is discernible from a reading of the proviso to sub-rule(4) of Rule 22 of the of the Central Goods and Services Tax Rules, 2017, that if a person, who has been served with a show cause notice under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017, is ready and willing to furnish all the pending returns and to make full payment of the tax itself along with applicable interest and late fee, the officer, duly empowered, can drop the proceedings and pass an order in the prescribed Form i.e. Form GST REG-20.

The learned counsel appearing for the parties have also referred to an Order, dated

11.10.2023, passed in WP(c) No. 6366/2023 [Sanjoy Nath vs. Union of India and others], and Order, dated 18.07.2025, passed in WP(c)3926/2025 [Dipjyoti Borah v. State of Assam & ors.]; wherein, the petitioners, therein, are similarly situated like the petitioner, herein.

Having regard to the fact that the GST Registration of the petitioner, herein, has been cancelled under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017, for the Page No.# 5/5 reason that it did not submit returns for a period of 6(six) months, or, more, and the provisions contained in the proviso to sub-rule(4) of Rule 22 of the of the Central Goods and Services Tax Rules, 2017, and cancellation of registration entailing serious civil consequences; this Court is of the considered view that in the event, the petitioner approaches the Officer, duly empowered, by furnishing all the pending returns and make full payment of the tax dues, along with applicable interest and late fee, the Officer so empowered, has the authority and jurisdiction to drop the proceedings and pass an appropriate order in the prescribed Form.

The entire process be completed expeditiously and preferably within an outer limit of 60(sixty) days from the date of receipt of a certified copy of this order.

It is needless to say that the period as stipulated under the provisions of Section 73(10) of the Central Goods and Services Tax Act/State Goods and Services Tax Act, shall be computed from the date of this order, except, for the financial year 2024-25, which shall be as per the provisions of Section 44 of the Central Goods and Services Tax Act/State Goods and Services Tax Act. The petitioner, herein, shall also be liable to make payment of arrears i.e. tax, penalty, interest and late fees.

With the above directions, the instant writ petition, accordingly, stands disposed of. JUDGE Comparing Assistant