Choudhury Tea And Agro Industries PVT LTD vs. Union Of INDIA And Ors

WP(C)/252/2026HC GauhatiGSTCNR GAHC01000327202610 February 2026Bench: HONOURABLE MR. JUSTICE DEVASHIS BARUAH4 pages

AI SummaryRemanded

Facts

The petitioner, Choudhury Tea and Agro Industries Pvt Ltd, is challenging the cancellation of its GST registration under Section 29 of the CGST Act, 2017. The petitioner's registration was cancelled on 07.10.2021 due to non-submission of returns since October 2020. The petitioner claims it did not receive the show cause notice issued on 02.09.2021. An application for revocation of cancellation, filed on 10.11.2021, was rejected on 18.11.2022. The petitioner approached the High Court via a writ petition. The revenue contended that the petitioner's reply to the show cause notice was unsatisfactory.

Held

The Court held that the order of cancellation of registration dated 07.10.2021 is set aside and quashed. The Court found that similar directions as passed in the case of Motaleb Bhuyan Vs. The State Of Assam And Ors could be applied. The petitioner is directed to file all pending returns from October 2020 till the date of the order within 30 days. The period stipulated in Section 73(10) of the CGST Act, 2017, for computation of time limits, shall be computed from the date of the instant judgment, with an exception for the financial year 2025-26, which will be governed by Section 44. The petitioner is also liable to pay arrears including tax, penalty, interest, and late fees. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the order of cancellation of registration dated 07.10.2021 is liable to be set aside and quashed, considering the petitioner's claim of non-receipt of the show cause notice and the subsequent rejection of the revocation application. (Question of law and fact, turning on Section 29 of the CGST Act, 2017). Petitioner's contention: The petitioner argued that it did not receive the show cause notice and therefore could not file a proper reply. The rejection of the revocation application was also challenged. The petitioner relied on the principles laid down in the case of Motaleb Bhuyan Vs. The State Of Assam And Ors, 2025 SCC OnLine SC 1429. Revenue's contention: The revenue argued that the petitioner's reply to the show cause notice was found to be unsatisfactory, leading to the cancellation of registration. The revenue did not explicitly contest the petitioner's claim of non-receipt of notice or the rejection of the revocation application in the provided text, but their actions imply a belief that due process was followed.

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

Page No.# 1/4 GAHC010003272026 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/252/2026 CHOUDHURY TEA AND AGRO INDUSTRIES PVT LTD A PRIVATE LIMITED COMPANY REPRESENTED BY ONE OF ITS DIRECTORS SRI PRITHIVI BASUMATARY AND HAVING ITS REGISTERED OFFICE SITUATED AT C/O-FATEMABAD TEA ESTATE, BAKSA, BTAD ,BARENGABARI, BAKSA , ASSAM , PIN-781315 VERSUS UNION OF INDIA AND ORS REPRESENTED BY THE SECRETARY TO THE GOVT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE ROOM NO 66 A, NORTH BLOCK, NEW DELHI 110001 2:THE PRINICPAL COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX GST BHAWAN KEDAR ROAD GUWAHATI ASSAM 781001 3:THE SUPERINTENDENT OF CGST NALBARI UNIT GST BHAWAN KADER ROAD MACHKHOWA GUWAHATI 781001 4:THE DEPUTY COMMISSIONER OF TAXES GUWAHATI ZONE B KAR BHAWAN GS ROAD DISPUR GUWAHATI ASSAM 78100 B E F O R E HON’BLE MR. JUSTICE DEVASHIS BARUAH Advocates for the petitioner(s) : Mr. A Goyal Page No.# 2/4 Advocates for the respondent(s) : Mr. S Chetia Date on which Judgment is reserved : NA Date of Pronouncement of Judgment : 11.02.2026 Whether the Pronouncement is of the : NA

Operative Part of the Judgment

Whether the Full Judgment has been : Yes Pronounced

JUDGMENT & ORDER(ORAL)

Heard Mr. A Goyal, the learned counsel appearing on behalf of the petitioner. I have also heard Mr. S Chetia, the learned counsel who appears on behalf of the respondent Nos.1 to 4. 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 on 10.11.2021. However, the said application was rejected on 18.11.2022. It is under such circumstances the petitioner has, therefore, approached this Court by filing the instant writ petition.

The materials on record reveal that the petitioner herein is a company registered under the provisions of the Companies Act 2013. The petitioner has obtained a registration under the CGST Act of 2017, and was provided with the Page No.# 3/4 GSTIN Unique ID bearing No.18AAACC8436H1ZL.

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 02.09.2021 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 02.09.2021. It is the case of the petitioner that the petitioner did not receive such notice and also did not file any reply. On the other hand, it is seen from the order dated 07.10.2021 that the petitioner's reply dated 03.10.2021 was with the following observations and directions: (i). The order of cancellation of registration dated 07.10.2021 is set aside and quashed. (ii). The petitioner herein is directed to file the returns for the period

Page No.# 4/4 from October 2020 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.