Debasish Boruah Vs Union of India And 2 Ors. (Gauhati High Court)
Summary of Facts: The petitioner, a GST-registered taxpayer under the CGST/AGST Act (Registration No. 18AXDPB6784C2ZJ), failed to file GST returns for over six months. Consequently, a show cause notice dated 13.11.2023 was issued under Section 29(2)(c) of the CGST Act, warning of ex parte proceedings. However, no personal hearing was scheduled. On 24.04.2024, the GST registration was cancelled by the Superintendent, Jorhat-1. The petitioner was unable to file a revocation application within the prescribed period and approached the High Court seeking redress.
Key Issues
- Whether cancellation of GST registration without granting an opportunity for a personal hearing violated principles of natural justice.
- Whether the petitioner should be permitted restoration of registration under the proviso to Rule 22(4) of the CGST Rules, 2017, upon compliance.
Decision/Outcome: The writ petition was disposed of with liberty to the petitioner to approach the GST authority within two months and comply with the requirements under Rule 22(4) proviso. The Court directed the concerned officer to consider the revocation/restoration application and pass orders accordingly.
Reasoning behind the Decision: The Court emphasized that cancellation of GST registration has serious civil consequences. Citing Rule 22(4)’s proviso, it held that if the petitioner furnishes all pending returns and pays taxes, interest, and late fees, the proper officer is empowered to drop proceedings and restore registration. Reference was also made to a similar precedent—Sanjoy Nath vs. Union of India (WP(C)/6366/2023)—affirming such relief.
