Pratik Raj Gautam Vs Union of India And 3 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/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 05.04.2024 requiring submission of a reply and appearance for personal hearing. It was stated that failure to respond would result in ex parte decision. Subsequently, by order dated 13.05.2024, the GST registration was cancelled without assigning any reasons.
The petitioner contended that due to financial hardship, he could neither file returns nor respond to the notice in time. The appeal filed against cancellation was dismissed. The petitioner further submitted that he had since filed all pending returns up to April 2024 and discharged all tax dues along with interest and late fees. However, he was unable to file an application for revocation as the statutory time limit of 270 days had expired.
The Court examined Section 29(2)(c) and Rule 22 of the CGST Rules, 2017, particularly the proviso to Rule 22(4), which allows authorities to drop cancellation proceedings if the taxpayer furnishes pending returns and pays dues with interest and late fees. The Court observed that cancellation of GST registration has serious civil consequences and that the statutory framework permits restoration upon compliance.
