Nur Islam Tapadar vs. The Union Of INDIA And 2 Ors.
Original PDF →Facts
The petitioner, Nur Islam Tapadar, operated a proprietorship business providing works contract services and was registered under the CGST Act, 2017. He was issued a Show Cause Notice dated 05.07.2023 for non-filing of GST returns for six continuous months. The notice indicated that failure to reply or appear for a personal hearing would lead to an ex-parte decision. Subsequently, the Superintendent, CGST, Hailakandi, cancelled the petitioner's GST registration by an order dated 08.08.2023. The petitioner claims the Show Cause Notice was not physically served but only uploaded on the GST portal, and due to ill health, he was unaware of it and did not file a reply. Upon becoming aware of the cancellation, he filed all pending returns and paid tax liabilities, interest, and penalties. However, he could not file a revocation application as the time limit had expired.
Held
The Court held that the cancellation of GST registration carries serious civil consequences. It noted that the petitioner's registration was cancelled under Section 29(2)(c) of the CGST Act, 2017, for non-filing of returns for six months or more. The Court referred to the proviso to sub-rule (4) of Rule 22 of the CGST Rules, 2017, which allows for dropping proceedings if the person furnishes all pending returns and makes full payment of tax dues, along with applicable interest and late fees. The Court found that the empowered officer has the authority and jurisdiction to drop proceedings and pass an appropriate order in such circumstances. Therefore, the writ petition was disposed of with a direction for the petitioner to approach the concerned authority within two months seeking restoration of his GST registration. If the petitioner complies with all requirements of the proviso to sub-rule (4) of Rule 22, the authority shall consider the application and pass necessary orders. The entire process is to be completed expeditiously within 60 days from the receipt of the order. The Court also clarified the computation of the period under Section 73(10) and noted that the petitioner is liable for arrears of tax, penalty, interest, and late fees.
Key Issues
1. Whether the cancellation of the petitioner's GST registration is liable to be set aside due to non-receipt of the Show Cause Notice, as contended by the petitioner, or whether the upload on the GST portal constitutes valid service? 2. Whether the petitioner, having filed all pending returns and paid tax dues, interest, and late fees, is entitled to a direction for the restoration of his GST registration, considering the proviso to sub-rule (4) of Rule 22 of the Central Goods and Services Tax Rules, 2017? Petitioner's arguments: The petitioner argued that the Show Cause Notice was not physically served, and due to ill health, he was unaware of the proceedings, leading to the cancellation of his registration. He further contended that he has since complied with all pending return filings and tax payments, and therefore, his registration should be restored. He relies on the proviso to sub-rule (4) of Rule 22 of the CGST Rules, 2017. Revenue's arguments: The judgment does not explicitly record arguments made by the revenue or state. However, the context implies that the revenue's action of cancelling the registration was based on the petitioner's failure to file returns as per Section 29(2)(c) of the CGST Act, 2017.
Sections Cited
Section 29(2)(c), Rule 22(4), Section 73(10), Section 44
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER Date : 05-08-2025 Heard Shri Shantanu Sarma, learned counsel for the Petitioner and Shri K. Jain, learned counsel on behalf of Mr. S.C. Keyal, Standing Counsel, GST & Central Excise Commissionerate, Guwahati, appearing on behalf of the respondent Nos. 2 & 3. 2. It is the case of the petitioner that he was carrying out a proprietorship business for providing works contract services and was accordingly registered under Central Goods and Services Tax Act, 2017 (CGST) vide Registration No. 18AQBPT0527C1Z5. On the reason for non-filing of GST returns for a continuous period of 6 (six) months, the petitioner, herein, was served with a Show Cause Notice, bearing reference No. ZA180723004560U, dated 05.07.2023, asking him to furnish reply to the aforesaid Notice within a period of 30(thirty) days from the date of service of the Notice and it was mentioned in the aforesaid 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. Thereafter, by the impugned order dated 08.08.2023 was passed by the Superintendent, CGST, Hailakandi-1, whereby petitioner’s GST Registration has been cancelled for not furnishing returns for a continuous period of 6(six) or more months
In the writ petition, the petitioner has contended that the Show Cause Notice was not physically served upon him and was simply uploaded in the GST online portal without any communication to the Petitioner. Due to his ill health
Page No.# 3/6 the Petitioner was completely detached from his day-to-day business activities and was accordingly not accessing the GST portal. Hence, he was not aware about the issuance of the Show Cause Notice, and hence did not file any reply thereto. For the same reason, he was also not aware about the passing of the order cancelling his GST registration.
Later, when he became aware about the cancellation of his GST registration for non-filing of the returns, he immediately filed all the pending GST returns till July 2023 being the month with effect from which his registration was cancelled. He also discharged his tax liabilities and also paid the late fines/ penalties.
Thereafter, the petitioner tried to file the necessary application seeking revocation of the cancellation of his GST Registration, however, the same could not be filed as the time limit prescribed for filing of revocation application, had lapsed and a message was displayed on the screen “timeline of 270 days from the date of cancellation order provided to taxpayer to file application for revocation of cancellation is expired.”
Being aggrieved, the petitioner, herein, has approached this Court by filing the present writ petition.
Shri Sarma, learned counsel for the petitioner, has submitted that the petitioner is ready and willing to comply with all the formalities required as per the proviso to sub-rule(4) of Rule 22 of the Central Goods and Services Tax Rules, 2017. Page No.# 4/6
As per the provisions of Section 29(2)(c) of the Central Goods and Services Tax Rules, 2017; 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 Central Goods and Services Tax Rules, 2017, has laid down the procedure for cancellation of the registration. The said Rule, being relevant, is extracted hereinbelow: “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 subsection (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
It is discernible from a reading of the proviso to sub-rule(4) of Rule 22 of the of the Central Goods and Services Tax Rules, 2017, that if a person, who has been served with a show cause notice under Section 29(2)(c) of the Central Goods and Services Tax 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. 10. The learned counsel appearing for the parties have also referred to an Order dated 24.07.2025 passed by this Court in WP(C) No. 3572/2025 [Smti Jinny Daimary -vs-State of Assam and 2 Others].
Having regard to the fact that the GST Registration of the petitioner, herein, has been cancelled under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017, for the reason that he did not submit returns for a period of 6(six) months, or, more, and the provisions contained in the proviso to sub-rule(4) of Rule 22 of the of the Central Goods and Services Tax Rules, 2017, and cancellation of registration entailing 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 so empowered, has the authority and juri iction to drop the proceedings and pass an appropriate order in the prescribed Form.
In that view of the matter; this writ petition is hereby disposed of by providing that the petitioner, herein, 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 Page No.# 6/6 the requirements as provided in the proviso to sub-rule(4) of Rule 22 of the of the Central Goods and Services Tax Rules, 2017; the concerned authority shall consider the application of the petitioner, herein, for restoration of his GST Registration and pass necessary orders in accordance with law.
The entire process be completed expeditiously and preferably within an outer limit of 60(sixty) days from the date of receipt of a certified copy of this order.
It is needless to say that the period as stipulated under the provisions of Section 73(10) of the Central Goods and Services Tax Act/State Goods and Services Tax Act, shall be computed from the date of this order, except, for the financial year 2024-25, which shall be as per the provisions of Section 44 of the Central Goods and Services Tax Act/State Goods and Services Tax Act. The petitioner, herein, shall also be liable to make payment of arrears i.e. tax, penalty, interest and late fees.
With the above directions, the instant writ petition, accordingly, 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.