Do Nam Enterprise and Anr Vs Union of India And Ors (Gauhati High Court)
Summary: The Gauhati High Court, in M/s Do Nam Enterprise and Anr Vs Union of India and Ors, considered a writ petition challenging the cancellation of the petitioners’ GST registration by an order dated 09.04.2024. The petitioners, engaged in catering and event management, acknowledged non-filing of returns under Section 39 of the CGST Act, 2017. A show cause notice dated 15.01.2023 had proposed cancellation and indicated suspension of registration from that date. Their counsel contended that neither the notice nor the cancellation order disclosed specific reasons under Section 29 of the CGST Act. The petitioners also stated that they became aware of the cancellation only while attempting to enrol in Government of India schemes.
When the petitioners attempted to file outstanding GSTR-1 and GSTR-3B returns to secure revocation, the GST portal prevented filing for January 2023, citing expiry of three years from the respective statutory due dates. The Court held that the issue was no longer res integra in light of its earlier decision in Motaleb Bhuyan Vs State of Assam and Ors, referred to in the order as 2025 SCC OnLine SC 1429. Finding the facts comparable, the Court held that the petitioners deserved similar relief. It set aside the cancellation dated 09.04.2024 and directed the petitioners to file all returns outstanding from the date of default within 30 days of the order dated 14.10.2026. The Court also directed that the periods under Sections 73(10) and 74(10) of the CGST/AGST Acts be computed from the date of this order, except FY 2026-27, for which Section 44 would apply, and made the petitioners liable to pay arrears of tax, penalty, interest and late fees. The judgment thus grants relief from cancellation without waiving outstanding statutory liabilities.
Cases Discussed
1. Motaleb Bhuyan Vs State of Assam and Ors (Gauhati High Court) — Citation as reproduced in the present order: 2025 SCC OnLine SC 1429. Principle applied: Similar cases involving cancellation of GST registration and inability to regularise returns were entitled to comparable relief. The Court followed this precedent and quashed the cancellation while requiring filing of returns and payment of dues. Disposition in the present case: Followed.
FULL TEXT OF THE JUDGMENT/ORDER OF GUWAHATI HIGH COURT
Heard Mr. C Agarwal, the learned counsel appearing on behalf of the petitioners. I have also heard Mr. S C Keyal, the learned Senior Advocate & Standing Counsel, CGST assisted by Mr. K Jain.
2. The petitioners herein are aggrieved by the order of cancellation of registration dated 09.04.2024 in terms with Section 29 of the Central Goods and Service Tax Act, 2017 (for short, ‘ the CGST Act of 2017’). The petitioners, thereupon, filed the returns 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 returns had elapsed. It is under such circumstances the petitioners have, therefore, approached this Court by filing the instant writ petition.
3. The materials on record reveal that the petitioners herein are engaged in the business of Catering and Event Management and is a registered Assessee under the Central Goods and Service Tax Act, 2017 (for short, ‘CGST Act of 2017’)/Assam Goods & Services Tax Act, 2017 (for short, ‘the AGST Act of 2017). The petitioners have obtained a registration under the CGST Act of 2017 and were issued a Registration number bearing 18BRYPP3373F1Z3.
4. On account of non-submission of the returns, which is required in terms with Section 39 of the CGST Act of 2017 (which the petitioners do not deny in the instant petition), a show cause notice was issued on 15.01.2023 asking the petitioners as to why the registration should not be cancelled. In addition to that, it was also mentioned that the GST registration shall stand suspended from 15.01.2023.
5. The learned counsel for the petitioners submitted that the Show Cause Notice which was issued on 15.01.2023 was vague, inasmuch as, no reason as provided under Section 29 of the CGST Act, 2017 has been mentioned. The learned counsel for the petitioners further submitted that even in the order of cancellation dated 09.04.2024 there are no reasons assigned as to why the registration has been cancelled.
6. It is the further case of the petitioners that the petitioners had no knowledge about such cancellation and at the time when the petitioners applied for enrolling in certain schemes announced by the Government of India, the petitioners came to learn that the petitioners registration had been cancelled.
7. The record also reveals that the petitioners thereafter had sought for revocation of the cancellation of the registration by filing the returns, which was, however, disallowed by the GST Portal stating that the “You are not allowed to file GSTR-1 & GSTR-3B for tax period January, 2023 after the expiry of 3 years from the respective due date of filing”’. 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.
8. It is the opinion of this Court that as the facts of the instant case are similar to those of the petitioners in the judgment rendered in the case of Motaleb Bhuyan (supra), the petitioners herein are entitled to similar reliefs.
9. Accordingly, the instant writ petition stands disposed of with the following observations and directions:
(i) The order of cancellation of registration dated 09.04.2024 is set aside and quashed.
(ii) The petitioners herein are directed to file the returns for the period from the date the petitioners 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 order, except for the financial year 2026-27, which shall be as per Section 44 of the CGST Act of 2017/AGST Act, 2017.
(iv) The petitioners herein shall also be liable to make payment of the arrears i.e. tax, penalty, interest and late fees.
