Dug Rade Vs Union of India and 2 Ors (Gauhati High Court)
The Gauhati High Court considered a writ petition challenging cancellation of GST registration under Section 29(2)(c) of the CGST Act and seeking its restoration. The petitioner, a proprietor running a business in Arunachal Pradesh, submitted that due to loss of login credentials for the GST portal, he could not access the system and consequently failed to file returns, leading to cancellation of registration by order dated 31.12.2024. After retrieving the credentials, the petitioner filed all pending GST returns up to the date of cancellation and paid the applicable penalties. However, despite compliance, the authorities did not revoke the cancellation.
The petitioner relied on a similar case where the Court had granted relief by directing restoration upon compliance. The respondents raised no objection to granting similar relief. The Court examined the relevant provisions, including Section 29(2)(c) and Rule 22 of the CGST Rules, which provide that if a person furnishes pending returns and pays dues, the cancellation proceedings may be dropped.
The Court noted that cancellation was based on non-filing of returns and that the petitioner had subsequently complied with statutory requirements by filing returns and paying dues. It also referred to earlier decisions of coordinate benches where similar relief had been granted in comparable circumstances.
