Page No.# 1/6 GAHC010198522025 undefined THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/5121/2025 M/S LAKHIPRIYA HAZARIKA A PARTNERSHIP FIRM HAVING ITS REGISTERED OFFICE AT NO. 1 BONGAIGAON, P.O. BANIPUR, DIST. DIBRUGARH, ASSAM PIN-786010, REPRESENTED BY ITS MANAGING PARTNER SRI DURLOV JYOTI HAZARIKA. VERSUS THE UNION OF INDIA AND 3 ORS. REP. BY THE SECRETARY TO THE GOVT. OF INDIA, MINISTRY OF FINANCE, NEW DELHI-110001. 2:THE PRINCIPAL COMMISISONER CENTRAL GOODS AND SERVICES TAX GST BHAWAN KEDAR ROAD GUWAHATI-1. 3:THE ADDITIONAL COMMISISONER (APPEALS) CENTRAL GOODS AND SERVICES TAX GST BHAWAN KEDAR ROAD GUWAHATI-1. 4:THE SUPERINTENDENT CENTRAL GOODS AND SERVICES TAX DIBRUGARH-1 DIBRUGARH-1 RANGE Page No.# 2/6 ASSA Advocate for the Petitioner : MR. A K GUPTA, MR. R S MISHRA Advocate for the Respondent : DY.S.G.I., SC, GST BEFORE HONOURABLE MR. JUSTICE SANJAY KUMAR MEDHI ORDER 03.09.2025 Heard Shri R. S. Mishra, learned counsel for the petitioner and Shri K. Jain, learned counsel appearing on instructions of Shri S. C. Keyal, learned Senior Standing Counsel, CGST for the respondents. 2. It is the case of the petitioner that the petitioner has been carrying out its business under the name & style, “M/s Lakhipriya Hazarika”. The petitioner is a partnership firm and is an assessee registered under the Central Goods and Services Tax (CGST) Act, 2017/Assam Goods and Services Tax (AGST) Act, 2017 bearing registration No. 18AAFFL7923G125. 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. AZ180120005886R dated 08.01.2020 asking the petitioner to furnish reply to the aforesaid notice within a period of 7 (seven) days from the date of service of notice and it was mentioned in the aforesaid show cause notice that if the petitioner fails to furnish a reply within the stipulated date or fails 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 of hearing was notified. Thereafter, the impugned order dated 14.04.2020 was passed by the Superintendent, Dibrugarh-1, Dibrugarh-I Range, whereby the petitioner’s GST registration has been cancelled without assigning any reason. Page No.# 3/6 3. The petitioner contends that the petitioner was not conversant with online procedures and therefore, the petitioner could not submit any reply to the said show cause notice in time. It is further contended that when the petitioner came across the said notice, the time for filing reply was already over and order had also been uploaded in the portal. The petitioner had also preferred an appeal which however was dismissed vide order dated 10.07.2025. 4. Being aggrieved, the petitioner has approached this Court by filing the present writ petition. 5. Shri Mishra, learned counsel for the petitioner 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. 7. Rule 22 of the CGST Rules, 2017 being the bone of contention, is extracted 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 Page No.# 4/6 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. 8. It is discernible from a reading of the proviso to sub-rule (4) of Rule 22 of the Rules of 2017 that if a person, who has been served with a show cause notice under Section 29(2)(c) of the Act, 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. Page No.# 5/6 9. The learned counsel for the parties have also referred to an Order dated 11.10.2023 passed in a writ petition being WP(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 Act, 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, may consider to drop the proceedings and pass an appropriate order in the prescribed Form. 11. 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 her 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 Rules, the concerned authority shall consider the application of the petitioner for restoration of its GST registration in accordance with law and shall take necessary steps for restoration of GST registration of the petitioner as expeditiously as possible. 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 order, 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 would also be liable to make payment of arrears i.e. tax, penalty, interest and late fees. Page No.# 6/6 13. The writ petition accordingly stands disposed of. No cost. JUDGE Comparing Assistant