In this case, a higher authority’s order under section 107 was challenged, but the appeal against cancelling the GST registration was rejected. The registration was cancelled because the applicant did not file GST returns for 6 months in a row.
Applicant before the court filed the desire to resume business operations and undertook to submit all the due returns for the whole default period and to pay all the applicable taxes, interest, penalty, late fees, and other regulatory dues. It was not a matter of the revenue that the applicant was engaged in fraud, tax evasion, suppression of facts, or any fake transaction. The Show Cause Notices (SCN), as well as the cancellation order, did not secure any allegation of bogus conduct.
Whether the GST registration that was cancelled for not filing returns, when there is no claim of fraud or tax evasion, can be restored if the person meets certain requirements, giving them a chance to fix their mistakes.
The court mentioned that, as the cancellation was founded on the fact of non-submission of returns rather than any allegation of fraud or tax evasion, refusal of restoration would adversely affect both the applicant’s business and the State’s revenue.
The Court, relying on the Division Bench decision in Subhankar Golder v. Assistant Commissioner of State Tax, Serampore Charge, granted one final chance to the applicant.
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As per that, the Court set aside and asked that the cancellation order shall stand set aside as per the applicant submitting all the due returns for the default period. The applicant will file all taxes, interest, penalties, late fees, and other applicable dues.
The registration will be restored as per compliance. The Jurisdictional Assessing Officer will activate the GST portal as well as the login credentials of the applicant within 1 week to allow compliance.
| Case Title | M/s. Peul Enterprise vs. The Union of India & Ors. |
| Case No. | WPA 17370 2025 |
| For Petitioner | Mr. Chittapriya Ghosh Mr. Somesh Kumer Ghosh Ms. Tulika Bag |
| For UOI | Mr. Sujit Bhunia |
| For Respondent | Mr. Bhaskar Prasad Banerjee Mr. Abhradip Maity |
| Calcutta High Court | Read Order |
