Desk of CA. Praveen Sharma – 968 Series (CAPS)

Gauhati High Court in the case of Nit Traders

In this case, GST registration was cancelled due to non-filing of returns for more than six months. A notice was issued, but the taxpayer could not respond due to lack of knowledge of the online system and business losses.

By the time the taxpayer became aware, the cancellation order had already been passed. The matter was then taken to the High Court.

The taxpayer submitted willingness to file all pending returns and pay tax, interest, and late fees. The Court observed that if a taxpayer is ready to comply, registration can be restored.

The Court also highlighted that cancellation affects business continuity and an opportunity should be given to regularise compliance.

The Court directed the taxpayer to approach the authority within two months and complete all compliances. The authority was instructed to consider restoration accordingly.

However, the taxpayer remains liable to pay all dues including tax, interest, penalty, and late fees.

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CAPS