Nizora Projects Pvt. Ltd. Vs Union of India And 3 Ors. (Gauhati High Court)
Summary: Gauhati High Court considered a writ petition filed by Nizora Projects Pvt Ltd challenging cancellation of its GST registration under Section 29 of the Central Goods and Services Tax Act, 2017. The petitioner had subsequently attempted to seek revocation of the cancellation, but the GST Portal did not permit the application because the prescribed time limit had elapsed. The petitioner therefore invoked the writ jurisdiction of the High Court. The company was registered under the CGST Act, 2017 and the Assam Goods & Services Tax Act, 2017 and was engaged in construction, contract and supply activities.
The petitioner alleged that its GST registration had been cancelled by order dated 12.08.2025 bearing Reference No. ZA1808250106498 without service of any show cause notice. Although the cancellation order referred to a show cause notice dated 07.07.2025, the petitioner claimed that it had not received that notice. Counsel for the petitioner submitted that the petitioner was not well conversant with the GST online portal and, having not received the show cause notice, failed to update its GST returns. It was contended that the cancellation order violated Section 29(2)(C), Rules 21 and 23 of the GST Rules and principles of natural justice.
The High Court observed that the petitioner could not apply for revocation of cancellation due to lapse of time and held that the issue was no longer res integra in view of Motaleb Bhuyan v. State of Assam And Ors. The Court was of the opinion that similar directions as contained in paragraph 50 of that judgment could be issued in the present proceedings.
Accordingly, the Gauhati High Court quashed the GST registration cancellation order dated 12.08.2025. Nizora Projects Pvt Ltd was directed to file all returns for the period from the date on which it had failed to file returns till date within 30 days of the order. The Court further directed that the period stipulated in Sections 73(10)/74(10) of the CGST Act, 2017/AGST Act, 2017 would be computed from the date of the judgment, except for financial year 2025-26, which would be governed by Section 44. The petitioner was also made liable to pay all arrears comprising tax, penalty, interest and late fees.
Cases Discussed
1. Motaleb Bhuyan v. State of Assam And Ors. — Gauhati High Court — relied upon for issuing similar directions concerning restoration of GST registration, filing of pending returns and statutory liabilities.
FULL TEXT OF THE JUDGMENT/ORDER OF GAUHATI HIGH COURT
Heard Mr. A. Khanikar, the learned counsel appearing on behalf of the Petitioner. Mr. S. Chakraborty, the learned CGC appears on behalf of the Respondent Nos.1 and Mr. S. Chetia, the learned counsel appears on behalf of the Respondent Nos.2 to 4.
2. The Petitioner herein is aggrieved by the cancellation of its GST registration in terms with Section 29 of the Central Goods and Services Tax Act, 2017 (for short, ‘the CGST Act of 2017’). The Petitioner, thereupon, filed an application seeking revocation of the cancellation of the registration, however, the same was not allowed by the GST Portal as the time limit prescribed for filing of revocation application had elapsed. It is under such circumstances the Petitioner, therefore, has approached this Court by filing the instant writ petition.
3. The materials on record reveal that the Petitioner herein is a Private Limited Company having GST No.18AAICNI229PIZ0 dated 14.04.2022 and is engaged in the business of constructions, contract and supply and is represented by its Managing Director Mazeharul Islam and is a registered Assessee under the Central Goods and Services Tax Act, 2017 (for short, ‘CGST Act of 2017’)/Assam Goods & Services Tax Act, 2017 (for short, ‘the AGST Act of 2017’). The Petitioner has obtained a registration under the CGST Act of 2017 and was provided with the Unique ID bearing GST Registration No.18AAICNI229PIZ0.
4. It is the allegation of the Petitioner that the Respondent Authorities without issuance of any Show Cause Notice, GST registration of the Petitioner has been cancelled vide the Reference No.ZA1808250106498 dated 12.08.2025 wherein there was a reference of issuance of Show Cause Notice dated 07.07.2025 which the Petitioner did not received.
5. Mr. A. Khanikar, the learned counsel appearing on behalf of the Petitioner submitted that the Petitioner was not well conversant with the provisions of GST online portal and as the Petitioner did not receive the Show Cause Notice, the Petitioner failed to update the GST returns. It is submitted by the learned counsel for the Petitioner that the order of GST cancellation dated 12.08.2025 is not at all sustainable in as much as the contravention of Section 29(2)(C) of the GST Act, Rule 21 & 23 of the GST Rules as well as violation of Natural Justice.
6. The record also reveals that the Petitioner, thereupon, could not file an application seeking revocation of the cancellation of the registration due to lapse of time. In this regard, this Court finds it very pertinent to take note of that the issue involved in the instant proceedings is no longer res integra taking into account that this Court had already dealt with similar issues in the case of Motaleb Bhuyan vs. The State Of Assam And Ors, reported in 2025 SCC OnLine SC 1429.
7. It is the opinion of this Court that similar directions which have been passed at paragraph No.50 of the said judgment can be passed in the instant proceedings. Accordingly, the instant writ petition, therefore, stands disposed of with the following observations and directions:-
(i) The order of cancellation of registration dated 12.08.2025 is set aside and quashed.
(ii) The Petitioner herein is directed to file the returns for the period from the date the Petitioner had failed to file the returns till date, within 30 days from the date of the instant order.
(iii) The period as stipulated in Section 73(10)/74(10) of the CGST Act of 2017/AGST Act, 2017 shall be computed from the date of the instant judgment, except for the financial year 2025-26, which shall be as per Section 44 of the CGST Act of 2017/AGST Act, 2017.
(iv) The Petitioner herein shall also be liable to make payment of the arrears i.e. tax, penalty, interest and late fees.
8. With the above, the instant writ petition stands disposed of.
