N Chetia And Sons Trading And 2 Ors Vs State of Assam And 3 Ors (Gauhati High Court)
The Gauhati High Court disposed of a writ petition filed by a partnership firm and its partners challenging multiple actions taken by the Assam State GST authorities, including cancellation of GST registration, issuance of show-cause notices, demand orders, attachment of bank accounts, and directions to government departments not to allot work to the firm. The firm’s GST registration had been cancelled in 2021 due to continuous non-filing of returns and non-payment of GST. Subsequent proceedings were initiated for recovery of dues for several financial years, resulting in bank account attachment and restrictions on business activities.
The petitioners contended that the managing partner was not technically proficient, the notices were not physically served, and defaults occurred due to lack of proper communication with their tax advisor. They argued that once registration was cancelled, the GST portal disabled filing of regular returns, making it impossible to regularise compliance or clear dues. They expressed willingness to file pending returns and pay outstanding liabilities, seeking revocation of cancellation, defreezing of bank accounts, and permission to pay dues in instalments.
The State authorities maintained that cancellation was lawful under Section 29(2) of the Assam GST Act due to continuous default and that bank account attachment was justified. They submitted that defreezing could occur only upon payment of dues, furnishing security, or satisfaction of the Commissioner.
