Indu Sarma vs. Union Of INDIA And 3 Ors
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The petitioner, Indu Sarma, proprietor of M/s North Eastern Builders, approached the Gauhati High Court challenging an 'Intimation for Suspension and Notice for Cancellation of Registration' dated 04.02.2026, issued under Rule 21A of the CGST Rules, 2017. The petitioner had failed to submit returns for various periods from October 2024 onwards, leading to notices under Section 46 of the AGST Act. A Show Cause Notice under Section 74 for the tax period April 2022 – March 2023 was issued on 02.08.2025, to which the petitioner sought an extension but did not submit a reply. A separate Show Cause Notice for cancellation of registration was also issued on 02.08.2025. An Assessment Order under Section 74 for April 2022 to March 2023 was passed on 19.11.2025. The petitioner did not disclose if an appeal was filed against this order. The impugned notice dated 04.02.2026 suspended the petitioner's registration and required filing of returns or a reply within thirty days.
Held
The Court held that the writ petition was not entertained because the petitioner had not exhausted the available remedies. Specifically, the petitioner had neither filed an appeal against the 'Intimation for Suspension and Notice for Cancellation of Registration' dated 04.02.2026, nor had they submitted the pending returns under Section 39(1) of the CGST/AGST Act, nor had they submitted a reply to the said notice within the stipulated period. The Court referenced Rule 21A(4) and Rule 22(4) of the CGST Rules, 2017, which provide for the revocation of suspension upon completion of proceedings or upon furnishing pending returns and payment of dues. The Court's reasoning was that the petitioner had a clear path to resolve the issue by complying with the directions in the notice dated 04.02.2026. The ratio decidendi is that statutory remedies must be exhausted before invoking the extraordinary writ jurisdiction of the High Court. The operative direction was that it is open to the petitioner to approach the Proper Officer in terms of the notice dated 04.02.2026.
Key Issues
1. Whether the petitioner has exhausted the available remedies before approaching the High Court under its writ jurisdiction, concerning the 'Intimation for Suspension and Notice for Cancellation of Registration' dated 04.02.2026. Petitioner's arguments: The petitioner approached the High Court directly challenging the notice for suspension and cancellation of registration. The judgment does not explicitly record arguments from the petitioner regarding the exhaustion of remedies, but the filing of the writ petition implies a contention that the notice was amenable to challenge before the High Court. Revenue's arguments: The respondents, represented by the Union of India and the State Tax authorities, would likely argue that the petitioner has not exhausted the statutory remedies available, such as filing a reply to the notice or appealing against the assessment order, before seeking recourse to the writ jurisdiction of the High Court. The judgment notes the petitioner's failure to file an appeal against the assessment order or submit a reply to the impugned notice.
Sections Cited
Section 39, Section 46, Section 74, Section 107, Rule 21A, Rule 22
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER Date : 28-09-2026 Heard Mr. P. Sundi, learned counsel for the petitioner; Ms. P. Agarwal, learned counsel for the respondent no. 1; and Mr. B. Gogoi, learned Standing Counsel, Finance & Taxation Department, Government of Assam for the respondent nos. 2 – 4. 2. The petitioner is a registered person under the provisions of the Central Goods and Services Tax Act, 2017 / Assam Goods and Services Tax Act, 2017 with GST Registration no. 18CMRPS0400D1Z6. 3. The petitioner has approached this Court after the petitioner has been served with ‘Intimation for Suspension and Notice for Cancellation of Registration’ in Form GST REG-31 dated 04.02.2026 under Rule 21A of the Central Goods and Services Tax Rules, 2017. 4. From the documents annexed to the writ petition, it inter alia transpires that the petitioner did not submit returns in compliance of Section 39 of the CGST Act / AGST Act during different periods from October, 2024 onwards. The petitioner was served with notices in Form GSTR-3A under Section 46 on 30.01.2025 and 27.04.2025. 5. Section 46 of the Assam Goods and Services Tax [AGST] Act, 2017 has provided for ‘Notice to Return Defaulters’. As per Section 46, AGST Act, where a registered person fails to furnish a return either under Section 39 or Section 44 or Section 45, a notice is to be issued requiring the registered person to furnish such return within fifteen days in such form and manner as may be prescribed
Page No.# 3/5 by the Act.
The petitioner has not disclosed whether after the notices under Section 46, the petitioner had submitted the returns in compliance of Section 39 for the period indicated in those notices.
It further transpires that a Show Cause Notice was also issued on 02.08.2025 under Section 74 to the petitioner as regards determination of tax during the tax period : April, 2022 – March, 2023 and the petitioner was directed to furnish a reply by 12.08.2025 or to appear for hearing. The petitioner sought for thirty days time to submit a reply. It seems that the petitioner did not submit any reply thereafter. The petitioner has not annexed a copy of the said Show Cause Notice dated 30.07.2025 with the writ petition.
It further transpires that a Show Cause Notice for Cancellation of Registration was issued on 02.08.2025 seeking clarification with respect to suo- moto cancellation and the petitioner was directed to submit clarification by 12.08.2025 or appear before the Proper Officer on 06.08.2025. 9. Thereafter, an Assessment Order under Section 74 for the tax period : April, 2022 to March, 2023 came to be passed on 19.11.2025 pursuant to the Show Cause Notice dated 30.07.2025 determining the liability. The petitioner has not disclosed whether any appeal against the Order dated 19.11.2025 has been preferred by the petitioner under Section 107 or not.
It is in the above background, the ‘Intimation for Suspension and Notice for Cancellation of Registration’ was issued on 04.02.2026. By the Notice dated 04.02.2026, the petitioner was inter alia requested to file return under sub- section [1] of Section 39 on the common portal or submit a reply to the Page No.# 4/5 juri ictional Tax Officer within thirty days from the receipt of the notice, providing explanation as regards the discrepancy or anomaly or contravention indicated therein. Keeping the registration of the petitioner under suspension by the Notice dated 04.02.2026, the Proper Officer has mentioned that the suspension of registration shall be lifted after the petitioner files return under sub-section [1] of Section 39 on the common portal.
As per sub-rule [4] of Rule 21A of the CGST Rules, 2017, the suspension of registration under sub-rule [2A] shall be deemed to be revoked upon completion of the proceedings by the Proper Officer under Rule 22 and such revocation shall be effective from the date on which the suspension had come into effect. Sub-rule [4] of Rule 22 has provided that where the reply furnished by the registered person is found to be satisfactory, the Proper Officer shall drop the proceedings and pass an Order in FORM GST REG –20. The proviso to sub-rule [4] of Rule 22 has 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. 12. Thus, it is for the petitioner to approach the Proper Officer in terms of the above direction made in the Intimation for Suspension and Notice for Cancellation of Registration dated 04.02.2026. The petitioner has neither filed any appeal against Intimation for Suspension and Notice for Cancellation of Registration issued on 04.02.2026 nor has submitted any returns under sub- section [1] of Section 39 on the common portal nor has submitted reply to the Page No.# 5/5 said notice exhausting the remedies available.
In such view of the matter, this writ petition is not entertained. It is, however, open to the petitioner to approach the Proper Officer in terms of the ‘Intimation for Suspension and Notice for Cancellation of Registration’ dated 04.02.2026. 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.