M/S S. D. Enterprise vs Union Of India And 3 Ors
2025 Latest Caselaw 4617 Gua

Gauhati High Court

M/S S. D. Enterprise vs Union Of India And 3 Ors on 18 August, 2025

Author: Sanjay Kumar Medhi

Bench: Sanjay Kumar Medhi

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GAHC010164372025




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                              THE GAUHATI HIGH COURT
   (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)

                                 Case No. : WP(C)/4603/2025

            M/S S. D. ENTERPRISE
            REPRESENTED BY ONE OF ITS PARTNER SARAT DUTTA, SON OF INDRA
            DUTTA, SITUATED AT KATHALGURI VILLAGE, DULIAJAN, DIBRUGARH,
            ASSAM-786601.



            VERSUS

            UNION OF INDIA AND 3 ORS
            REPRESENTED BY THE SECRETARY TO THE GOVERNMENT OF INDIA,
            DEPARTMENT OF FINANCE.

            2:THE PRINCIPAL COMMISSIONER OF CENTRAL GOODS AND SERVICE
            TAX
             GST BHAWAN
             KEDAR ROAD
             GUWAHATI-781001
            ASSAM

            3:THE ASSISTANT COMMISSIONER
             CENTRAL GOODS AND SERVICE TAX
             GUWAHATI
            ASSAM

            4:THE SUPERINTENDENT
             CENTRAL GOODS AND SERVICE TAX
             NAHARKATIA
             DIBRUGARH RANGE DISTRICT

Advocate for the Petitioner   : MR S K AGARWAL, M AGARWAL

Advocate for the Respondent : DY.S.G.I., SC, GST
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                                 BEFORE
                HONOURABLE MR. JUSTICE SANJAY KUMAR MEDHI

                                      ORDER

18-08-2025 Heard Shri S. K. Agarwal, learned counsel for the petitioner and Shri S. Chetia, learned Standing counsel, CGST for the respondent Nos. 2 to 4.

2. It is the case of the petitioner that he is an Assessee registered under the provisions of the Central Goods and Services Tax (CGST) Act, 2017/Assam Goods and Services Tax (AGST) Act, 2017 bearing registration No. 18ACUFS8648G1Z7 and because of non-filing of GST returns for a continuous period of six months, the petitioner was served with a show cause notice bearing reference No. ZA180420003399Q dated 30.04.2020. By the said notice he was asked to furnish reply within a period 30 (thirty) days from the date of service of notice and it was mentioned that if the petitioner fails to furnish a reply within the stipulated date or to appear for personal hearing on the appointed date and time, the case will be decided ex-parte on the basis of the available records and on merits. However, no date for personal hearing was ever notified. Thereafter, the impugned order dated 06.10.2020 was issued by the Superintendent, Dibrugarh-2 respondent No.4, cancelling GST registration of the petitioner for not furnishing returns for a continuous period of 6 (six) or more months.

3. Though, the petitioner tried to file the necessary application seeking revocation of GST cancellation, however, the same could not be filed as the time limit prescribed for filing of revocation application was elapsed.

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4. Accordingly, the petitioner has approached this Court by filing the present writ petition.

5. Shri Agarwal, the learned counsel appearing for the petitioner has submitted that due to reasons beyond his control, the petitioner could not submit the returns required to be submitted under Section 39(1) of the CGST Act, 2017 for a period of about 6 (six) months or more. However, he has submitted that the petitioner is ready and willing to comply with all the formalities required as per proviso to sub-rule (4) of Rule 22 of the CGST Rules, 2017.

6. As per Section 29(2)(c) of the Act, an officer, duly empowered, may cancel the GST registration of a person from such date, including any retrospective date, as he deems fit, where any registered person has not furnished returns for a continuous period of 6 (six) months. Rule 22 of the CGST Rules, 2017 has laid down the procedure for cancellation of the registration which is quoted herein below:-

Rule 22 : Cancellation of Registration (1) Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under Section 29, he shall issue a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled.

(2) The reply to the show cause notice issued under sub-rule [1] shall be furnished in FORM REG-18 within the period specified in the said sub-rule. (3) Where a person who has submitted an application for cancellation of his Page No.# 4/6

registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under Rule 20 or, as the case may be, the date of the reply to the show cause issued under sub-rule [1], [or under sub-rule (2A) of Rule 21A] cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid under sub-section [5] of Section 29.

(4) Where the reply furnished under sub-rule [2] [or in response to the notice issued under sub-rule (2A) of Rule 21A] is found to be satisfactory, the proper officer shall drop the proceedings and pass an order in FORM GST REG-20 :

Provided that where the person instead of replying to the notice served under sub rule [1] for contravention of the provisions contained in Clause [b] or Clause [c] of sub-section [2] of section 29, furnishes all the pending returns and makes full payment of the tax dues along with applicable interest and late fee, the proper officer shall drop the proceedings and pass an order in FORM GST REG-20.

(5) The provisions of sub-rule [3] shall, mutatis mutandis, apply to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself.

7. It is discernible from a reading of the proviso to Rule 22 (4) of the CGST Rules 2017 that if a person, who has been served with a show cause notice under Section 29(2)(c) of the CGST Act, 2017, is ready and willing to furnish all the pending returns and to make full payment of the tax itself along with applicable interest and late fee, the officer, duly empowered, can drop the proceedings and pass an order in the prescribed Form i.e. Form GST REG-20.

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8. The learned counsel for the parties have also referred to an Order dated 26.05.2025 passed in a writ petition, W.P.(C) No. 2793/2025 ( Ansari Construction vs. Union of India and others ) wherein the petitioner therein was similarly situated like the present petitioner.

9. Having regard to the fact that the GST registration of the petitioner has been cancelled under Section 29(2)(c) of the CGST Act, 2017 for the reason that the petitioner did not submit returns for a period of 6 (six) months and more; and the provisions contained in the proviso to sub-rule (4) of Rule 22 of the CGST Rules, 2017 and cancellation of registration entails serious civil consequences, this Court is of the considered view that in the event the petitioner approaches the officer, duly empowered, by furnishing all the pending returns and make full payment of the tax dues, along with applicable interest and late fee, the officer duly empowered, has the authority and jurisdiction to drop the proceedings and pass an order in the prescribed Form.

10. In such view of the matter, this writ petition is disposed of by providing that the petitioner shall approach the concerned authority within a period of 2 (two) months from today seeking restoration of his GST registration. If the petitioner submits such an application and complies with all the requirements as provided in the proviso to Rule 22 (4) of the CGST Rules, 2017, the concerned authority shall consider the application of the petitioner for restoration of his GST registration in accordance with law and shall take necessary steps for restoration of GST registration of the petitioner as expeditiously as possible.

11. With the observations made and the direction given above, the writ Page No.# 6/6

petition is disposed of. No cost.

12. It is needless to say that the period as stipulated under Section 73 (10) of the Central GST Act/State GST Act shall be computed from the date of the instant judgment, except for the financial year 2024-25, which shall be as per Section 44 of the Central GST Act/State GST Act. The petitioner herein also be liable to make payment of arrears i.e. tax, penalty, interest and late fees.

JUDGE

Comparing Assistant