In a recent Judgement, the Calcutta High court directed the date GST department to restore Goods and Services Tax ( GST ) registration which was cancelled. It was directed that the registration can be restored on compliance of Conditions by assesee within Provided Time.
Abdul Nayim Chowdhury, the petitioner challenged the order of cancellation of registration of the petitioner passed under the Central/West Bengal Goods and Services Tax Act, 2017.
A show cause was issued calling upon the petitioner to show cause as to why the petitioner’s registration shall not be cancelled for having not filed returns for a continuous period of six months and Cancelled the registration of the petitioner.
Mr. Dey, representing the petitioner submitted that the petitioner was all along and is interested to comply with the provisions of the said Act. Further, stated that by reasons of unforeseen circumstances, the petitioner could not apply for revocation of the order of cancellation. According to the petitioner, the petitioner did not have the knowledge of the show cause or the order of cancellation.
Further submitted that the petitioner should be afforded with an opportunity to file his returns by restoring his registration and the petitioner undertakes to make payment of all arrear tax, interest, penalty and fine as may be found due.
Mr. Siddiqui, advocate appeared on behalf of the State-respondents.
Considering the materials on record, a single bench of Justice Raja Basu Chowdhury viewed that having regard to the case made out by the petitioner that the petitioner was prevented by sufficient cause from firstly responding to the show cause and secondly from filing of an application for revocation of the order of cancellation of registration, an opportunity should be granted to the petitioner, who is only a small businessman, to continue with his business and profession, especially when it is not the case of the respondents that the petitioner had been adapting dubious process to evade tax.
The court held that the respondents should take a pragmatic view in the matter and permitted the petitioner to carry on his business.
The Court set aside the order cancelling the registration of the petitioner under the said Act, subject to the condition that the petitioner files his returns for the entire period of default and pays requisite amount of tax, interest, fine and penalty, if not already paid.
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