Calcutta HC Directs Restoration of GST Registration on the Condition to Pay Overdue Tax with Interest and Fines

The High Court Of Calcutta, in a case set aside the GST registration cancellation as of not filing the returns and asked for the restoration of the registration furnished the applicant to file all the overdue returns and pay the required tax, interest, fines and penalties.

A writ petition has been filed by Biswajit Basu, the petitioner-assessee, challenging two orders. The cancellation of his GST registration dated 15th January 2020 and the appellate order dated 15th April 2024, dismissed his appeal as time-restricted u/s 107 of the GST Act.

A show-cause notice has been received before the applicant dated 25th November 2019 for non-filing of the returns for 6 months, directing to the cancellation of his GST registration under the WB GST/CGST Act, 2017.

It was cited by the applicant that because of pre-COVID duration, he cannot answer directing to his registration cancellation. He thereafter appealed without asking for revocation u/s 107.

The applicant’s counsel Mr Chatterjee in the hearing claimed that the applicant wished to comply with all the provisions of the act if provided with a chance.

Mr. Bhanja, the counsel of the respondent claimed that the cancellation has arrived because of the failure of the applicant to adhere to the act, and no personal enmity is engaged in that.

It was discovered by the court that the registration of the applicant has been cancelled only for the cause of not filing the GST returns, without any allegations of tax evasion.

It remarked that cancelling the registration shall restrict the business of the applicant and impact the recovery of revenue. Hence the court recommended the respondents to measure a pragmatic strategy and permit the applicant to carry on his business.

The bench directing the navigation of Subhankar Golder v. Assistant Commissioner of State Tax ( MAT 639 of 2024 ) on 9th April 2024, wished to set aside the order on 15th January 2020 that had cancelled the GST registration of the applicant.

The decision hinged on the petitioner completing all outstanding filings and resolving the required taxes, interest, fines, and penalties.

It was carried by the court that if the applicant follows the norms within 4 weeks then their registration shall be restored. And if not then the writ petition shall get dismissed automatically.

To the respondent, a single bench of Judge Raja Basu Chowdhury asked to activate the portal in 1 week for the applicant to submit the returns and file all the liabilities, set aside the order of Appellate Authority from 15th April 2024, and dispose of the writ petition.