Section 29 of the CGST Act, 2017 — Cancellation of the registration -- The petitioner challenged the order cancelling the registration, for non filing of returns for a period of six months. The petitioner had filed the appeal, which was rejected on 06.09.2022 on the ground that the appellate authority has no power to interfere with an order issued under Section 29 and since the petitioner had not filed any application for revocation within the time permitted under Section 30, the appellate authority has no option but to reject the appeal. The court observed that the SCN shows that the same has been issued in Form GST Reg 31, which is for suspension of revocation and not for cancellation of registration. The notice is absolutely vague and it is not clearly specified with any clarity, the reasons for proposing cancellation even the period for which there was alleged failure to file returns is not specified.

Held that:- The Hon’ble High Court quashed the impugned order and directed the petitioner to file all defaulted returns together with tax, late fee, interest, penalty etc., within a period of two weeks from the date on which the registration of the petitioner is restored in compliance with this judgment.