Dipjyoti Borah Vs State of Assam And 2 Ors. (Guwahati High Court)
In a significant ruling, the Guwahati High Court has directed the tax department to consider dropping GST registration cancellation proceedings against a taxpayer who failed to file returns but has since rectified his compliance. The court’s order, stemming from the case of Dipjyoti Borah Vs State of Assam, hinges on a specific proviso within the GST rules that allows for the dropping of proceedings upon the full payment of dues.
The petitioner, Dipjyoti Borah, a proprietor, had his GST registration cancelled by the Assistant Commissioner of State Tax on June 6, 2023. The cancellation was a consequence of the petitioner’s failure to file GST returns for a continuous period of six or more months, a contravention under Section 29(2)(c) of the CGST Act, 2017. Prior to the cancellation, a show-cause notice was issued on May 4, 2022, but the petitioner failed to respond within the stipulated 30-day period.
Representing the petitioner, counsel Shri R. S. Mishra informed the court that the non-compliance was not intentional. The petitioner cited the challenging circumstances of the Covid-19 pandemic and his lack of familiarity with online procedures as the reasons for his inability to respond to the notice and file the returns on time. However, after recovering from the financial and operational impact of the pandemic, the petitioner rectified his position by filing all pending returns up to June 2022 and discharging all his GST dues, including applicable interest and late fees.
