Sakil Zaman vs. The Union Of INDIA And 2 Ors
Original PDF →Facts
The petitioner, Sakil Zaman, engaged in hardware trading under the name 'Sakil Enterprise', is a registered assessee under the CGST Act, 2017. Due to non-submission of returns, a show cause notice was issued on December 16, 2024, proposing cancellation of registration and suspending it from the same date. The petitioner claims financial difficulties and that the show cause notice uploaded on the GST portal was missed, leading to a delay in filing a reply and attending the hearing. Consequently, his GST registration was cancelled. An application for revocation of cancellation was filed but denied by the GST Portal due to the expiry of the 270-day time limit from the cancellation order.
Held
The Court held that the issue was no longer res integra, referencing the case of Motaleb Bhuyan Vs. The State Of Assam And Ors. The Court found it pertinent to pass similar directions as in the cited judgment. Accordingly, the order of cancellation of registration dated April 4, 2025, was set aside and quashed. The petitioner was directed to file all pending returns from the date of default until the present date within 30 days of the order. The time limit stipulated in Section 73(10) of the CGST Act, 2017, for computation of tax, penalty, and interest, was to be computed from the date of the instant judgment, with an exception for the financial year 2025-26, which would be governed by Section 44 of the CGST Act, 2017. The petitioner was also directed to pay all arrears, including tax, penalty, interest, and late fees.
Key Issues
1. Whether the cancellation of GST registration under Section 29 of the CGST Act, 2017, is liable to be set aside and quashed, considering the petitioner's failure to file returns and the subsequent denial of revocation application due to time bar. Petitioner's contention: The petitioner argued that the delay in filing returns and attending the hearing was due to severe financial difficulties and the show cause notice being missed on the GST portal. They sought revocation of the cancellation. Revenue's contention: The revenue, represented by the Principal Commissioner and Jurisdiction Officer/Superintendent of Central Goods and Service Tax, opposed the petition, relying on the expiry of the statutory time limit for filing the revocation application as prescribed by the GST portal.
Sections Cited
Section 29, Section 39, Section 73(10), Section 44
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Operative Part of the Judgment
Whether the Full Judgment has been : Yes Pronounced
JUDGMENT & ORDER(ORAL)
Heard Mr. RS Mishra, the learned counsel appearing on behalf of the petitioner. I have also heard Mr. SC Keyal, the learned counsel who appears on behalf of the respondent Nos.2 & 3. 2. The petitioner herein is aggrieved by the cancellation of its registration in terms with Section 29 of the Central Goods and Service Tax Act, 2017 (for short, ‘the CGST Act of 2017’). The petitioner, thereupon, filed an application seeking revocation of the cancellation of the registration, however, the same was not allowed by the GST Portal as the time limit prescribed for filing of revocation application had elapsed. It is under such circumstances the petitioner has,
Page No.# 3/4 therefore, approached this Court by filing the instant writ petition.
The materials on record reveal that the petitioner herein is engaged in the business of trading of hardware goods under the name and style of ‘Sakil Enterprise’ and is a registered Assessee under the Central Goods and Service Tax Act, 2017 (for short, ‘CGST Act of 2017’)/Assam Goods & Services Tax Act, 2017 (for short, ‘the AGST Act of 2017). The petitioner has obtained a registration under the CGST Act of 2017 and was provided with the Unique ID bearing GST Registration No.18ADHPZ3234H1Z8. 4. On account of non-submission of the returns, which is required in terms with Section 39 of the CGST Act of 2017 (which the petitioner does not deny in the instant petition), a show cause notice was issued on 16.12.2024 asking the petitioner as to why his registration should not be cancelled. In addition to that, it was also mentioned that his registration shall stand suspended from 16.12.2024. 5. It is the case of the petitioner that at the relevant point of time the petitioner was facing severe financial difficulties in running his business and further the show cause notice which was uploaded in the GST Portal skipped the notice of the petitioner and as such there was delay in filing the reply to the show cause notice as well as attend the hearing within the stipulated period. Consequently, the GST registration of the petitioner was cancelled.
The record also reveals that the petitioner thereafter had sought for revocation of the cancellation of the registration by filing an application, which was, however, denied stating that the ‘timeline of 270 days from the date of cancellation order provided to taxpayer to file Application for Revocation of Cancellation is expired’. In this regard, this Court finds it very pertinent to take
Page No.# 4/4 with the following observations and directions: (i). The order of cancellation of registration dated 04.04.2025 is set aside and quashed. (ii). The petitioner herein is directed to file the returns for the period from the date the petitioner had failed to furnish returns till date, within 30 days from the date of the instant order. (iii). The period as stipulated in Section 73(10) of the CGST Act of 2017 shall be computed from the date of the instant judgment, except for the financial year 2025-26, which shall be as per Section 44 of the CGST Act of 2017. (iv). The petitioner herein also shall be liable to make payment of the arrears i.e. tax, penalty, interest and late fees.
With the above, the instant writ petition stands disposed of.
JUDGE Comparing Assistant
Reproduced from the public record of the Gauhati High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.