In the recent case, the High Court Of Calcutta, set aside the cancellation of GST registration due to non-filing of returns and directed the restoration of the registration, provided the petitioner filed all overdue returns and paid the necessary tax, interest, fines, and penalties.
Biswajit Basu,the petitioner-assessee, filed a writ petition challenging two orders.The cancellation of his GST registration dated 15th January 2020 and the appellate order dated 15th April 2024, which dismissed his appeal as time-barred under Section 107 of the GST Act.
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The petitioner received a show-cause notice ( SCN ) on 25th November 2019 for not filing returns for six months, leading to the cancellation of his GST registration under the WB GST/CGST Act, 2017.
The petitioner stated that due to the pre-COVID period, he could not respond, leading to the cancellation of his registration. He later appealed under Section 107 without seeking revocation.
During the hearing, the petitioner’s counsel, Mr. Chatterjee, argued that the petitioner was willing to comply with all provisions of the Act if given an opportunity.
The respondent’s counsel, Mr. Bhanja, argued that the cancellation had occurred due to the petitioner’s failure to comply with the Act, and there was no personal enmity involved.
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The court found that the petitioner’s registration had been canceled solely for non-filing of returns, without any allegations of tax evasion. It noted that revoking the registration would hinder the petitioner’s business and impact revenue recovery. Therefore, the court advised the respondents to take a pragmatic approach and allow the petitioner to continue his business.
The Bench, referencing the directions from Subhankar Golder v. Assistant Commissioner of State Tax ( MAT 639 of 2024 ) on 9th April 2024, decided to set aside the order dated 15th January 2020 that had canceled the petitioner’s GST registration. This decision was contingent upon the petitioner filing all overdue returns and settling the requisite tax, interest, fines, and penalties.
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The court held that if the petitioner complied with the conditions within four weeks, their registration would be restored. Otherwise, the writ petition would be dismissed automatically.
A single bench of Judge Raja Basu Chowdhury directed the respondents to activate the portal within one week for the petitioner to file returns and pay dues, set aside the Appellate Authority’s order from 15th April 2024, and disposed of the writ petition.
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