S. D. Enterprise Vs Union of India And 3 Ors (Gauhati High Court)
Cancellation of GST Registration for non-filing of returns for six months was allowed to be restored upon submission of pending returns and dues
Conclusion: Assessee’s GST Registration for non-filing of returns for six months was allowed to be restored upon submission of all pending returns and payment of dues.
Held: Assessee was a registered assessee under CGST/AGST Acts had failed to file GST returns for six months. Show cause notice dated 30.04.2020 issued under Sec. 29(2)(c), but no personal hearing date was specified. Registration was cancelled on 06.10.2020. Assessee could not apply for revocation within prescribed time; hence, approached the Court by filing the present writ petition. Assessee could not file GST returns under Section 39(1) of the CGST Act, 2017 for about six months due to reasons beyond control, but was willing to comply with all pending formalities under Rule 22(4) of the CGST Rules, 2017. It was held that Proviso to Rule 22(4) permits restoration if assessee files pending returns and clears all dues. Officer had jurisdiction to drop cancellation proceedings and restore registration. Assessee was directed to approach authority within 2 months; authority to restore GST registration if statutory requirements were fulfilled. The period under Section 73(10) of the CGST/State GST Act would be counted from the date of the judgment (except for the financial year 2024-25, which would follow Section 44) and that assessee remained liable to pay arrears, including tax, interest, penalty, and late fees.
