M/S GAURI SHANKAR BINOD KUMAR v. THE STATE OF ASSAM AND 3 ORS

Advocate for the Petitioner : DR ANKIT TODI, MS. R JUGLI,MS M PARBIN Advocate for the Respondent : SC, FINANCE AND TAXATION, Page No.# 2/6 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.

2. The petitioner in the present proceeding has assailed an order dated 18.12.2024, issued by the Assistant Commissioner of State Taxes, Guwahati-A-9 i.e. the respondent no.4 under Section 29 of the Assam Goods and Services Tax Act, 2017, read with Rule 22 of the Assam Goods and Services Tax Rules Act, 2017, cancelling the registration of the petitioner under the GST Act.

3. The petitioner has also assailed an order dated 12.03.2025, passed by the Special Commissioner of State Taxes, Guwahati-A-9 i.e. the respondent no.3 under Section 30 of the Assam Goods and Services Tax Act, 2017, read with Rule 23 of the Assam Goods and Services Tax Rules Act, 2017, rejecting the application of the petitioner for restoration of his registration on the ground that the same was preferred after the limitation prescribed for the same had lapsed.

4. The petitioner in the writ petition has projected that it is a proprietorship firm dealing with the business of cotton wholesale and retail business. The petitioner was granted registration under the GST Act vide bearing no.18ABTPB9827E1ZB dated, 20.09.2017, in FORM GST REG-06.

5. The petitioner has further projected that a show-cause notice for cancellation of the said registration under GST Act, was issued by the Assistant Commissioner of State Taxes, Guwahati-A9 (i.e. the respondent no.4), in exercises of powers under Section 29(2) of the Assam Goods and Services Tax Act, 2017, read with Rule 22(1) of the Assam Goods and Services Tax Rules Act, 2017. The petitioner was to submit his reply within 7(seven) days from the date of service of the notice. The petitioner contends that it was unable to file its reply, to the said show-cause notice as uploaded in the portal due to oversight. Page No.# 3/6

6. The petitioner projects that it had filed its returns in GSTR-1 on 12.09.2024 for the month of May, 2024, but due to oversight it could not file its GSTR-3B in due time. The petitioner contends that it had filed and updated its due to GSTR-3B return on 27.12.2024, and paid the due taxes for the month of May, 2024, as applicable under the provisions of the Goods and Services Tax Act, 2017. The petitioner further contends that the returns in GSTR-1 and GSTR-3B for the month of December, 2024 was filed by him vide 11.01.2025 and

30.01.2025, respectively, and had paid due taxes, thereon.

7. Accordingly, the petitioner contends that all due returns of the petitioner were updated till the date of cancellation of the GST registration. The petitioner on being made aware of the cancellation of its registration in the month of January, 2025, had submitted an online application on 30.01.2025, for revocation of the order for cancellation of registration, invoking the provision of Section 30 of the Assam Goods and Services Tax Rules Act, 2017. The receipt of the said application is contended to have been acknowledged by the respondent authorities.

8. The application dated 30.01.2025, submitted by the petitioner led to the issuance of a show-cause notice by the Special Commissioner of State Taxes, dated 06.02.2025, requiring the petitioner to show cause as to why the application for revocation of cancellation of registration, is not to be rejected.

9. The petitioner submits that the uploading of the said show-cause notice in the portal escaped notice and despite exercise of due diligence it could not submit any reply to the said show-cause notice dated 06.02.2025. Accordingly, the respondent no.3 vide order dated

12.03.2025 proceeded to reject the application preferred by the petitioner for revocation of the cancellation of its registration.

10. Being aggrieved, the petitioner, herein, has approached this Court by filing the present writ petition. Page No.# 4/6

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

12. 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. (2) The reply to the show cause notice issued under sub-rule [1] shall be furnished in FORM REG-18 within the period specified in the said sub-rule. (3) Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under Rule 20 or, as the case may be, the date of the reply to the show cause issued under sub-rule (1), (or under sub-rule (2A) of Rule 21A) cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid under subsection (5) of Section 29. (4) Where the reply furnished under sub-rule (2) (or in response to the notice issued under sub-rule (2A) of Rule 21A) is found to be satisfactory, the proper officer shall drop the proceedings and pass an order in FORM GST REG-20: Provided that where the person instead of replying to the notice served under sub rule (1) for contravention of the provisions contained in Clause (b) or Clause (c) of sub-section (2) of section 29, furnishes all the pending returns and makes full payment of the tax dues along with applicable interest and late fee, the proper officer shall drop the proceedings and pass an order in FORM GST REG-20. (5) The provisions of sub-rule (3) shall, mutatis mutandis, apply to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself.”

13. It is discernible from a reading of the proviso to sub-rule(4) of Rule 22 of the of the Page No.# 5/6 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.

14. 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.

15. 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 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.

16. In that view of the matter; this writ petition is hereby disposed of by providing that the petitioner, herein, shall approach the concerned authority within a period of 2(two) months from today seeking restoration of its GST registration. If the petitioner submits such an application and complies with all the requirements as provided in the proviso to sub-rule(4) of Rule 22 of the of the Central Goods and Services Tax Rules, 2017; the concerned authority shall consider the application of the petitioner, herein, for restoration of its GST Registration and pass necessary orders in accordance with law.

17. 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. Page No.# 6/6

18. It is needless to say that the petitioner, herein, shall also be liable to make payments of arrears i.e. tax penalty, interest and late fee as would now be computed by the competent authority.

19. With the above observations and directions, the instant Writ Petition, accordingly, stands disposed of. JUDGE Comparing Assistant