TaxTMI 
TaxTMI 
2026 (6) TMI 251
X X X X Extracts X X X X
X X X X Extracts X X X X
....ess through his proprietorship firm under the name of M/s. Arunachal Offset Enterprise, Papum Pare, Arunachal Pradesh, registered under the Goods and Services Tax Act, 2017 and having GST Registration, bearing GSTIN/UIN: 12BPA7616K2ZB. 5. Having found that the petitioner had failed to file the requisite returns, a Show Cause Notice dated 04.07.2021 was issued by the respondent authority directing the petitioner to show cause as to why the GST Registration should not be cancelled on account of non-filing of returns for a continuous period of six months. Thereafter, vide the impugned order dated 06.03.2019, the GST Registration of the petitioner was cancelled. 6. Ms. K. Yamak, learned counsel for the petitioner submits that the petitioner was not aware of the aforesaid Show Cause Notice dated 04.07.2021 as his login credentials was not with him and therefore, could not submit a reply. She submits that the petitioner has no intention either to evade payment of tax or to violate the provisions of the GST Act, 2017 and it was only due to lack of familiarity with the GST portal procedures that the petitioner could not file the returns and pay the requisite tax on time. The petition....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2025, decided on 18.12.2025, found that the petitioner therein was similarly situated to the petitioner in the said case and accordingly granted relief on the same terms. The relevant para of the said decision is reproduced herein below, for ready reference:- "10. Considered the submissions of the learned counsel for the parties and also perused the judgment and order dated 17.10.2025 passed by a Coordinate Bench of this Court in the case of Dhirghat Hardware Stores (supra). The relevant paragraphs of the said judgment are reproduced hereinbelow: 8. As per Section 29(2)(c) of the Act, an officer, duly empowered, may cancel the GST registration of a person from such date, including any retrospective date, as he deems fit, where any registered person, has not furnished returns for a continuous period of 6 (six) months. Rule 22 of the CGST Rules, 2017 has laid down the procedure for cancellation of the registration. 9. Rule 22 of the CGST Rules, 2017 being the bone of contention, is extracted herein below:- Rule 22: Cancellation of Registration (1) Where the proper officer has reasons to believe that the registration of a person is liable t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 11. The learned counsel for the parties have also referred to an Order dated 11.10.2023 passed in a writ petition being WP(C) No.6366/2023 (Sanjoy Nath vs. The Union of India and others) wherein the petitioner therein was similarly situated like the present petitioners. 12. Having regard to the fact that the GST registration of the petitioner has been cancelled under Section 29(2) (c) of the Act, for the reason that the petitioners did not submit returns for a period of 6 (six) months and more and the provisions contained in the proviso to sub-rule (4) of Rule 22 of the CGST Rules, 2017 and cancellation of registration entails serious civil consequences, this Court is of the considered view that in the event the petitioners approach the officer, duly empowered, by furnishing all the pending returns and make full payment of the tax dues, along with applicable interest and late fee, the officer duly empowered, may consider to drop the proceedings and pass an appropriate order in the prescribed Form. 13. In such view of the matter, this writ petition is disposed of by providing that the petitioners shall approach the concerned authority within a period of 2 (....
X X X X Extracts X X X X
X X X X Extracts X X X X
....like the petitioner is not included within the GST regime, then any statutory dues that may be required to be deposited by an assessee like the petitioner would not be deposited and properly accounted for and such a situation is, albeit, not in the interest of the revenue. 21. At the same time, cancellation of GST registration would entail adverse civil consequences to the person affected as due to cancellation of her registration under the GST regime, the person would be outside it and it would be difficult for the person to carry on any business in a valid manner. It is not in doubt that the impugned Order dated 26.12.2024 whereby the petitioner's GST registration has been cancelled is an order which has the consequence of bringing adverse consequences to the petitioner. 22. When the contents of the impugned Order dated 26.12.2024 are looked at, it is found that in the impugned Order, the Proper Officer has not assigned any reason as to why the petitioner's GST Registration has been cancelled. 23. On perusal of the impugned Order, it is evidently clear that the impugned Order is not in conformity with the procedure prescribed in FORM GST REG19. A speaki....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rit petition in April, 2026, that is, after more than one year four months from the order of cancellation of registration. Although the petitioner has not approached the Court immediately after the order of cancellation of registration, this Court is of the considered view that when the extent of vulnerability of the order of cancellation of registration is due to not meeting the statutory prescription of recording reasons is pitted against the delayed approach, the vulnerability of the order of cancellation of registration, due to statutory breaches, would far outweigh the delayed approach because of its likely adverse affect on a registered person like the petitioner. 27. For all the afore-mentioned reasons, the impugned Order dated 26.12.2024 is set aside and quashed. With the setting aside and quashing of the impugned Order dated 26.12.2024, the matter stands reverted back to the stage of issuance of the Show Cause Notice in FORM GST REG-17. 28. It is discernible from a reading of the proviso to sub-rule [4] of Rule 22 of the CGST Rules that if a person who has been served with a Show Cause Notice under Section 29[2][c] of the CGST Act is ready and willing to ....