M/S Do Nam Enterprise And Anr vs. The Union Of INDIA And 2 Ors
Facts
The petitioners, M/s Do Nam Enterprise and its proprietor Miss Lakhipriya Pegu, are aggrieved by the order dated 09.04.2024 cancelling their GST registration under Section 29 of the CGST Act, 2017. They are engaged in catering and event management. A show cause notice was issued on 15.01.2023 for non-submission of returns as required by Section 39 of the CGST Act, 2017. The petitioners claim the show cause notice and the cancellation order were vague and lacked reasons. They discovered the cancellation when applying for government schemes. Their subsequent attempt to file returns for revocation was disallowed by the GST portal due to elapsed time limits.
Held
The Court held that the facts of the present case are similar to those in the case of Motaleb Bhuyan Vs. The State Of Assam And Ors (2025 SCC OnLine SC 1429), which dealt with similar issues. Therefore, the petitioners are entitled to similar reliefs. The Court set aside and quashed the order of cancellation of registration dated 09.04.2024. The petitioners are directed to file all pending returns from the date of failure until the present date within 30 days. The time period stipulated in Section 73(10)/74(10) of the CGST Act, 2017/AGST Act, 2017 shall be computed from the date of this order, except for the financial year 2026-27, which will be governed by Section 44. The petitioners are also liable to pay arrears of tax, penalty, interest, and late fees.
Key Issues
1. Whether the order of cancellation of registration dated 09.04.2024 is liable to be set aside and quashed on the grounds of vagueness and lack of reasons, contrary to Section 29 of the CGST Act, 2017? Petitioner's arguments: The petitioners contended that the show cause notice dated 15.01.2023 was vague, failing to provide specific reasons for cancellation as mandated by Section 29 of the CGST Act, 2017. They further argued that the subsequent order of cancellation dated 09.04.2024 also failed to assign any reasons. They were unaware of the cancellation until they attempted to enroll in government schemes. Revenue's arguments: The revenue did not record any specific arguments against the petitioner's claims regarding vagueness or lack of reasons in the show cause notice and cancellation order. However, they were represented by counsel.
Sections Cited
Section 29, Section 39, Section 73, Section 74, Section 44
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Page No.# 1/6 GAHC010212722026
2026:GAU-AS:15703
THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/5329/2026 M/S DO NAM ENTERPRISE AND ANR BEARING GSTIN- 18BRYPP3373F1Z3, A PROPRIETORSHIP CONCERN REPRESENTED BY ITS PROPRIETOR MISS LAKHIPRIYA PEGU, HAVING ITS PRINCIPAL PLACE OF BUSINESS AT VILLAGE- HALDHIBARI, DIGRU, SATGAON ARMY CAMP ROAD, GUWAHATI, KAMRUP METROPOLITAN, ASSAM- 782401. 2: MISS LAKHIPRIYA PEGU D/O- RAMKRISHNA PEGU PROPRIETOR OF M/S DO NAM ENTERPRISE PERMANENT RESIDENT OF C/O- RAMKRISHNA PEGU PANBARI NARAYANPUR LAKHIMPUR PIN- 784164 AND PRESENT ADDRESS OF C/O- GEETAMRANI TALUKDAR JURANI PATH RUKMINIGAON PIN- 781022 GUWAHATI VERSUS THE UNION OF INDIA AND 2 ORS REPRESENTED BY THE SECRETARY TO THE GOVERNMENT OF INDIA, MINISTRY OF FINANCE, JEEVAN DEEP BUILDING, SANSAD MARG, NEW DELHI -110001. 2:THE COMMISSIONER (APPEALS) CENTRAL GOODS AND SERVICE TAX CENTRAL EXCISE AND CUSTOMS 3RD FLOOR GST BHAWAN KEDAR ROAD MACHKHOWA
Page No.# 2/6 GUWAHATI-781001 ASSAM 3:THE SUPERINTENDENT CENTRAL GOODS AND SERVICE TAX GUWAHATI-A-1 II-E RANGE GST BHAWAN KEDAR
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