Mahendra Gurung Vs Union of India And 3 Ors (Gauhati High Court)
The Gauhati High Court adjudicated a writ petition concerning cancellation of GST registration under Section 29(2)(c) of the CGST/AGST Act, 2017 due to non-filing of returns for a continuous period of six months. The petitioner, a sole proprietor, was issued a show cause notice dated 11.11.2019 requiring a response within seven days, failing which the matter would be decided ex parte. As no reply was submitted within the stipulated time, the authorities passed an order dated 21.11.2019 cancelling the GST registration.
The petitioner submitted that due to lack of familiarity with online procedures and losses during the Covid-19 period, he could not access the GST portal or respond to the notice in time. Upon becoming aware, the time for response had expired and the cancellation order had already been passed. An appeal seeking revocation was subsequently filed but rejected on the ground of delay.
Before the Court, the petitioner expressed willingness to comply with statutory requirements by filing pending returns and paying applicable tax, interest, and late fees. The Court examined Rule 22 of the CGST Rules, 2017, particularly the proviso to sub-rule (4), which permits authorities to drop cancellation proceedings if the taxpayer furnishes pending returns and clears dues.
