Gauhati High Court Allows Restoration of GST Registration for Dhirghat Hardware Stores

Court Directs Petitioners to Comply with CGST Rules for Reinstatement of Registration  

In a recent judgment, the Gauhati High Court has provided a lifeline to Dhirghat Hardware Stores, whose GST registration was previously cancelled due to non-filing of returns for six consecutive months. The Court, presided over by Justice Sanjay Kumar Medhi, addressed the petitioners' failure to adhere to the online procedural requirements, which led to the lapse in responding to a show cause notice and subsequent cancellation of their GST registration.

The petitioners, represented by Advocate R. S. Mishra, argued that they were not well-versed with the digital processes required for compliance, leading to a delay in filing their returns. Despite submitting all pending returns and clearing their GST dues along with applicable late fees and interest, their appeal for revocation of the cancellation was initially dismissed due to the expiration of the prescribed timeline for filing such applications.

Justice Medhi cited Rule 22(4) of the CGST Rules, 2017, which allows for the restoration of GST registration if all pending returns are filed and dues are paid. Emphasizing the significant civil consequences of cancellation, the Court directed the petitioners to approach the concerned authority within two months, ensuring compliance with the stipulated requirements for reinstatement.

The judgment aligns with a previous decision in a similar case, reinforcing the provision that empowers officers to drop cancellation proceedings if compliance is demonstrated. The petitioners are now tasked with submitting the necessary applications and fulfilling all conditions under Rule 22(4) to have their GST registration reinstated.

The Court's decision underscores the importance of adhering to procedural timelines and provides a framework for rectifying past non-compliance, facilitating business continuity for the petitioners.

Bottom Line:

GST Registration - Cancellation of GST registration due to non-filing of GST returns for six months - Restoration of GST registration permissible if pending returns are submitted and dues are cleared as per Rule 22(4) of CGST Rules, 2017.

Statutory provision(s): Goods and Services Tax Act, 2017 Section 29(2)(c), Rule 22 of CGST Rules, 2017

Dhirghat Hardware Stores v. Union of India, (Gauhati) : Law Finder Doc Id # 2796366