Sanjoy Nath Vs Union of India And 2 Ors (Gauhati High Court)

In Sanjoy Nath vs. Union of India & Ors., the Gauhati High Court addressed the cancellation of the petitioner’s GST registration due to non-filing of returns for over six months. The petitioner, a sole proprietor registered under the CGST Act, 2017, received a show cause notice on July 7, 2022, directing him to explain why his registration should not be revoked. Despite responding to the notice, his GST registration was canceled on August 11, 2022, under Section 29(2)(c) of the CGST Act, 2017, and Rule 22 of the CGST Rules, 2017.The petitioner contended that the delay in filing returns was due to circumstances beyond his control. He expressed willingness to comply with the requirements under Rule 22(4) of the CGST Rules, which allow for revocation of cancellation if pending returns are submitted and outstanding dues, including interest and penalties, are paid. The court examined the legal provisions and observed that the empowered officer has the discretion to drop proceedings upon such compliance.The court referred to its earlier decision in Sri Bhupender Pal Singh vs. State of Assam & Ors. (2023), where a similarly situated petitioner was granted the opportunity to restore GST registration upon meeting statutory requirements. Consistent with this precedent, the court noted that denying the petitioner a chance to rectify the lapse would be unjust, particularly when tax compliance could still be ensured through remedial measures.Accordingly, the High Court directed the petitioner to approach the competent authority within two months to seek restoration of GST registration. If all pending returns were filed and dues settled as per Rule 22(4), the tax authorities were instructed to consider the application and take necessary steps to reinstate the registration. The case reaffirms judicial emphasis on procedural fairness in tax compliance matters.