Page No.# 1/6 GAHC010068862025 2025:GAU-AS:4309 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/1940/2025 M/S DRUHI TRADERS AND ANR A PROPRIETORSHIP CONCERNS REPRESENTED BY ABHISHEK SAHARIA, AGE AROUND 42 YEARS S/O SHYAM SUNDER SAHARIA HAVING HIS PLACE OF BUSINESS SITUATED AT 1ST FLOOR NEW MARKET, DIBRUGARH, PO AND PS DIBRUGARH, ASSAM 2: ABHISHEK SAHARIA PROPRIETOR OF DRUHI TRADERS S/O SHYAM SUNDER SAHARIA HAVING HIS PLACE OF BUSINESS SITUATED AT 1ST FLOOR NEW MARKET DIBRUGARH PO AND PS DIBRUGARH ASSAM 78600 VERSUS UNION OF INDIA AND ORS REPRESENTED BY THE SECRETARY TO THE GOVT OF INDIA MINISTRY OF FINANCE, DEPTT. OF REVENUE ROOM NO 66A NORTH BLOCK, NEW DELHI- 110001 2:THE PRINCIPAL COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX GST BHAWAN KEDAR ROAD GUWAHATI 781001 ASSAM 3:THE SUPERINTENDENT CENTRAL GOODS AND SERVICE TAX DIBRUGARH RANGE DIBRUGARH 2 ASSAM 4:THE JOINT COMMISSIONER CENTRAL GOODS AND SERVICE TAX DIBRUGARH RANGE Page No.# 2/6 DIBRUGARH 2 ASSA Advocate for the Petitioner : MR. A GOYAL, MR. DIVYANSH RATHI,MR. A CHOUDHURY Advocate for the Respondent : DY.S.G.I., SC, GST BEFORE THE HON’BLE MR JUSTICE ARUN DEV CHOUDHURY O R D E R 08.04.2025 1. Heard Mr. A Goyal, learned counsel for the petitioner and Mr. S.C. Keyal, learned Standing Counsel, CGST for all the respondents. 2. The petitioner No. 1 is proprietorship firm and the petitioner No. 2 is the sole proprietor of the firm and because of non-filing of GST returns for a continuous period of six months, the petitioner was served with a show cause notice dated 05.02.2024 by the jurisdiction officer. It is to be mentioned herein that the GST registration of the petitioner was suspended with effect from 05.02.2024. The GST registration of the petitioner was cancelled vide order dated 07.03.2024 passed by the respondent No. 3. The show cause notice was uploaded in the portal/ profile of the petitioner and by the time the petitioner came across the said show cause notice, the time for filing reply was already over and the aforesaid order was already been uploaded in the portal. 3. After updating the returns, the petitioner filed an application for revocation of cancellation of registration along with an application for condonation of delay in filing the revocation application on 30.09.2024. The reasons assigned by the petitioner was not found to be sufficient for condoning the delay and the petitioner was given a seven working day’s time vide letter dated 07.10.2024 to show cause in writing as to why his application should not be rejected. The application of the petitioner for condonation of delay in filing the revocation application for cancellation of registration Page No.# 3/6 has been rejected, the petitioner preferred an appeal before the Commissioner (Appeals) and the said appeal was also rejected by the Commissioner (Appeals) vide order dated 22.01.2025. That being aggrieved by the cancellation of GST registration, the petitioner approached the Appellate Authority. But since the order of cancelling the GST registration was passed on 07.03.2024 and the condonation of delay in filing the revocation application was not allowed by the respondent authorities and by now the time limit for filing the appeal has already been elapsed. The petitioner having no other alternative has decided to approach this court. 4. The petitioner has averred that as the show cause notice was uploaded in the common portal, the petitioner despite exercise of his diligence, failed to notice the fact of uploading of the show cause notice in the common portal and as a result, he could not submit any reply to the show cause notice dated 05.02.2024. 5. Section 39(1) of the CGST Act, 2017 inter alia requires a registered person to furnish a return for every calendar month or part thereof, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and within such time, as may be prescribed. 6. Mr. Goyal, 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. He has, however, 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. 7. As per Section 29(2)(c), 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. For ready reference, Rule 22 of the CGST Rules, 2017 Page No.# 4/6 is quoted herein below in its entirety :- 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 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. Page No.# 5/6 8. It is discernible from a reading of the proviso to sub-rule (4) of Rule 22 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. 9. 9. The learned counsel for the parties have also referred to an Order dated 11.10.2023 passed in a writ petition, W.P.(C) no. 6366/2023 (Sanjoy Nath vs. The Union of India and others) wherein the petitioner therein was similarly situated like the present petitioner. 10. 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. 11. 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 sub-rule (4) of Rule 22 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. With the observations made and the Page No.# 6/6 direction given above, the writ petition is disposed of. No cost. 12. It is needless to say that the period as stipulated under Section 73(10) of the Central Act/ State 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 Act/ State Act. The petitioner herein also be liable to make payment of arrears i.e. tax, penalty, interest and late fees. JUDGE Comparing Assistant