Two High Courts set aside registration cancellations, allowing the businesses back in on condition that returns are filed and dues paid, with the Karnataka court also quashing Section 74 notices.

The Gauhati and Karnataka High Courts have set aside cancellations of GST registration, allowing the taxpayers to resume compliance on condition that they file pending returns and pay the dues. [Ratul Boro v. Union of India & Ors., 2026-juristway.com-3146-HC(Gauhati)-GST; Vayu Constructions v. Assistant Commissioner of Commercial Taxes (Enforcement)-01 & Ors., 2026-juristway.com-3145-HC(Karnataka)-GST]

Ratul Boro. Justice Devashis Baruah quashed an order dated 17 May 2024 cancelling the registration of a motor-vehicle hire business under Section 29 for non-filing of returns. The petitioner said the show cause notice of 5 Feb 2024 and the order gave no reasons, and that it learnt of the cancellation only when enrolling in a government scheme; the portal later refused revocation as 270 days had passed. Following Motaleb Bhuyan Vs. The State of Assam and Ors. (2025 SCC OnLine SC 1429), the Court directed the petitioner to file all pending returns within 30 days and pay tax, interest, penalty and late fees. The periods under Sections 73(10) and 74(10) are to run from the date of the order, except for 2026-27, which follows Section 44.

Vayu Constructions. Justice T.M. Nadaf quashed a cancellation order dated 26 Dec 2022 and three Section 74 notices dated 28 Mar 2026 for 2021-22, 2023-24 and 2024-25, issued after officers found the petitioner doing business without registration. The petitioner said it could not file returns, pay tax or reply to the notices while the cancellation stood. Relying on Sri. T.V. Basavaraju vs. Superintendent of Central Tax and Another (W.P.No.21725/2024), the Court found the reasons unsatisfactory but, citing the right to carry on trade or business and the right to life under Article 21, gave a one-time opportunity on costs of ₹35,000 payable to the Army Women’s Welfare Association within three weeks. Registration is to be restored within four weeks, subject to the petitioner filing returns and paying tax within that period.

2026-juristway.com-3146-HC(Gauhati)-GST | 2026-juristway.com-3145-HC(Karnataka)-GST