GST registration SUO_MOTO cancelled.

[Jignesh Sitapara]

Dear Experts,

One of my Colleague's client GSTIN cancelled due to returns defaulter Now, the Department has issued 'Order of Rejection of Application for Revocation of Cancellation' against revocation. Hence I wish to file an appeal. But I do not understand what to mention in STATEMENT OF FACTS, Because the accountant had not filed GST returns due to some altercation Now, please advise me how can file an appeal ? I mean which ground for the an appeal ?

Please help me.

[Sadanand Bulbule]

Only the core point is indicated:

The impugned order rejecting the application for revocation of cancellation is unjustified in the facts and circumstances of the case. The non-filing of returns was occasioned by bona fide administrative difficulties and was neither wilful nor with any intent to evade tax. The appellant is ready and willing to file all pending returns and discharge the entire tax liability along with applicable interest, late fee and other statutory dues. Since cancellation of registration seriously prejudices the appellant's business operations and revenue interests of the Government are fully safeguarded, the order deserves to be set aside and the registration restored in the interest of justice, equity and fair play.

[YAGAY and SUN]

You can use the following concise draft for the Statement of Facts and Grounds of Appeal:

STATEMENT OF FACTS

The Appellant is a registered taxpayer under the CGST/SGST Act and was regularly carrying on business activities. The registration came to be cancelled on account of non-filing of GST returns for certain tax periods.

The default occurred due to internal accounting and compliance issues, resulting in the returns not being filed within the prescribed time. There was no intention to evade tax or suppress any information. The non-compliance was purely procedural and arose due to circumstances beyond the Appellant's immediate control.

Thereafter, the Appellant initiated steps to regularize the default and filed an application for revocation of cancellation of registration. However, the Proper Officer rejected the application vide the impugned order without adequately considering the facts and circumstances of the case.

The Appellant is carrying on a genuine business and is willing to file all pending returns and discharge applicable tax, interest and late fees as required under law. Cancellation of registration is causing severe hardship and adversely affecting business operations and future tax compliance.

GROUNDS OF APPEAL

1. The impugned order is arbitrary, unjustified and liable to be set aside.

2. The Proper Officer failed to appreciate that the default was procedural in nature and not deliberate.

3. The Appellant is ready and willing to regularize all pending compliances and discharge statutory liabilities.

4. Cancellation of registration defeats the objective of GST law, which is to ensure tax compliance and revenue collection.

5. The rejection of revocation causes undue hardship to a genuine taxpayer and is disproportionate to the nature of the default.

6. The order has been passed without properly considering the facts, submissions and circumstances of the case.

The Appellant therefore prays that the impugned order be set aside and the GST registration be restored in the interest of justice.

If all pending returns and dues have already been cleared, mention that specifically in the Statement of Facts, as it significantly strengthens the appeal.

[Jignesh Sitapara]

Superb.........

Thank you so much for reply.

[KASTURI SETHI]

Also add. Rejection of revocation has effected his livelihood.

.

[KASTURI SETHI]

Kiran Enterprises Versus Commissioner, State Goods - 2024 (10) TMI 1306 - UTTARAKHAND HIGH COURT

 

[Jignesh Sitapara]

Very Very Thank you so much Sir for the Judgement.

[KASTURI SETHI]

2026 (6) TMI 389 - GAUHATI HIGH COURT -Md. Nekib Hussain Versus The Union of India, The Principal Commissioner Central Goods and Service Tax Central Excise and Customs Guwahati, The Jurisdiction Officer/ Superintendent Central Goods and Service Tax Dhaligaon Range.

Entitlement to restoration of GST registration after cancellation for non-filing of returns - furnishing pending returns and making payment of tax dues, interest and late fee - Restoration of GST registration on compliance with proviso to Rule 22(4) - HELD THAT: - The Court held that the case was squarely covered by the earlier coordinate Bench decision in the case of Dhirghat Hardware Stores [2025 (10) TMI 1070 - GAUHATI HIGH COURT] on similar facts and law. Proceeding on the basis of the proviso to Rule 22(4), as extracted in the earlier decision, the Court accepted that where cancellation had been made under Section 29(2)(c) for non-filing of returns, and the registered person was ready to furnish all pending returns and make payment of the tax dues with applicable interest, penalty and late fee, the proper officer could consider dropping the proceedings and restoring the registration in accordance with law. On that basis, the petitioner was granted the same liberty to approach the concerned authority, and the authority was directed to consider restoration expeditiously upon due compliance. The Court further directed that the period stipulated under Section 73(10) of the CGST Act/State GST Act would be computed from the date of the present order, except for the financial year 2024-25, for which computation would be governed by Section 44. [Paras 11, 12, 13]

The petitioner was permitted to apply within the time granted for restoration of GST registration, and the proper officer was directed to consider such application in accordance with law on compliance with the proviso to Rule 22(4), with the consequential direction regarding computation of the period under Section 73(10).

Final Conclusion: Following the earlier coordinate Bench decision on the same legal position, the writ petition was disposed of by permitting the petitioner to seek restoration of GST registration on furnishing pending returns and complying with the proviso to Rule 22(4) of the CGST Rules, 2017. The authority was directed to consider such request expeditiously, with the period under Section 73(10) to run from the date of the order except for the financial year 2024-25.

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[Ganeshan Kalyani]

Intention to evade tax is absent. This may be a part of grounds of appeal.

[Jignesh Sitapara]

Thanks you so much.

[Shilpi Jain]

There are many favourable decisions in case of registrations cancelled and not revoked if the assessee is ready to file returns and pay the tax dues. See if you would wish to file a Writ in HC.

AI Summary

GST registration cancellation for non-filing of returns can be challenged by showing bona fide default and readiness to regularise compliance. GST registration cancelled for non-filing of returns may be challenged by pleading that the default was procedural or due to bona fide compliance difficulties, with no intention to evade tax or suppress turnover. The appeal against rejection of revocation may stress willingness to file all pending returns and pay tax, interest, late fee and other statutory dues, and may contend that cancellation is arbitrary, disproportionate and causes hardship to business operations and livelihood.