KHIREN DAS v. The State Of Assam

Advocate for the Petitioner : DR ANKIT TODI, MR A NATH,MS M PARBIN,MS. R JUGLI Advocate for the Respondent : SC, TAXES, 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 proceedings presented a challenge to an order dated

18.01.2022, issued by the Assistant Commissioner of State Taxes, Goalpara-2(i.e. the respondent no.3) herein, under the provisions of 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 presented a challenge to an order dated 28.03.2022, issued by the respondent no.3 rejecting the application submitted by the petitioner for revocation of the cancellation of his registration.

4. The petitioner in the Writ Petition has projected that he is a contractor and supplier undertaking contractual works of civil nature and supply of various products. The petitioner had for the purpose of his business got himself registered under the GST Act, and was issued Registration Certificate No.18ADUPD6776H1ZW dated 23.09.2017 in FORM GST, REG-06.

5. The respondent no.3, herein, had issued a show-cause notice to the petitioner for cancellation of the said registration under the GST, Act, by invoking the provisions of 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 registration of the petitioner was further suspended on 04.01.2022 and the petitioner was required to submit his reply in the matter with 7(seven) days from the date of service of the notice.

6. The petitioner further contends that the said show-cause notice uploaded in the common portal had not been noticed by him and as a result he could not submit his reply to the said show-cause notice. Accordingly, the respondent no.3 vide order dated 18.01.2022 proceeded to cancel the registration of the petitioner, herein. Page No.# 3/6

7. The petitioner submits that there was no fault on its part in uploading its returns and all returns are duly filed and updated and taxes were paid till the date of impugned cancellation of registration. It is further contended that the GSTR-3B for the month of December, 2021, was not uploaded and the same was so uploaded only on 07.01.2022 i.e. prior to the passing of the impugned order of cancellation of registration.

8. The petitioner submits that on becoming aware of the order of cancellation of registration, the petitioner submitted an online application dated 29.01.2022, praying for revocation of the order of cancellation of registration. The respondent no.3 on receipt of the application submitted by the petitioner on 29.01.2022, had issued to him a show-cause notice dated 04.02.2022, to show-cause as to why the said application is not to be rejected. The petitioner submits that the said notice dated 04.02.2022 had escaped his notice, although the same was uploaded in the common portal. Accordingly, the respondent no.3 proceeded vide order dated 28.03.2023 to reject the application dated 29.01.2022, preferred by the petitioner for revocation of the cancellation of his registration.

9. Being aggrieved, the petitioner, herein, has approached this Court by filing the present writ petition.

10. 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.

11. 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: Page No.# 4/6 “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.”

12. 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.

13. 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. Page No.# 5/6

14. 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.

15. 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.

16. 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.

17. 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. Page No.# 6/6

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