Recently the decision by Calcutta high court for the GST registration cancellation was held on the grounds of hyper technicality. It also creates an environment for revenues and business employment.
On 8th Feb the applicant, M/s. CIGFIL Retail Pvt. Ltd. has asked the impugned order where it mentioned the cancellation of the GST registration below section 29(2) of the state GST act towards the enrollment issue was received through the documents void ab initio but there were no business operations on the said space and the challenging order on 16th April 2021 do not accept the applicant’s petition to revocation of cancellation and the order of the Appellate Authority dated 25th August 2021. The stated challenge order permitted the post to provide the show-cause-notice on 1st February 2021 and on the acknowledgement of answering the mentioned show-cause notice.
The concern of the applicant is that the refusal of enrollment was cleanly upon the grounds of the technical basis of the small defect in the sub-let agreement that is inserted and amid the applicant and the lessor in which the lessor furnishes unwanted details towards its status and towards such unwanted information through lessor, the applicant shall not be missed. The applicant moreover furnishes that these unwanted details or these defects inside the agreement of the rent was being corrected through the supplementary agreement and it was made earlier to the concerned authorities while the hearing was ongoing for the show cause notice under GST and was shrugged by the petitioner.
As per the petitioner, it stated that so to prevent the revocation of the protocol of pandemic he carries on business from some locations and in that time he furnished the taxes to the state respondents with time and the state respondents or the GST authority relevant to hold the taxes beneath GST to carry on the business at the concerned duration which are all portions of the record.
Judge Md. Nizamuddin revealed that it is not the tax theft case or which the case where there is a loss in the revenue to the government instead of the activity of the applicant that moves the business that shall not be said that no good is generating the revenue to the state and in support to the state to reduce the unemployment and these kinds of initiative in the scenario through refusing the registration of the applicant upon the mentioned hyper-technical basis shall not support the state instead it causes the loss in revenue to the state and the rise in the issues of the unemployment of the state shall be the social issues in the society.
“I am inclined to set aside the impugned order dated 16th April 2021 and order of the Appellate Authority dated 25th August 2021 confirming the cancellation of registration of the petitioner for revocation of cancellation of its registration, by directing the State respondent concerned to consider afresh the case of the petitioner in the light of the judgment of this court in the case of International Value Retail Private Limited Vs. Union of India & Ors. (supra) as well as the observation made in this order and while re-considering the case of the petitioner for revocation of cancellation of its registration, the respondent concerned will make a physical inspection of the premises in question upon notice to the petitioner and give the opportunity to the petitioner to place all the documents to satisfy the respondent concerned about the actual physical possession of the petitioner at the premises in question and the respondent concerned may verify the existence of the petitioner at the premises in question as well as carrying on the business activity of the petitioner from the premises in question from the local people and make a final decision by not taking a hyper-technical view and pass a reasoned and speaking order after giving the opportunity of hearing to the petitioner or its authorized representatives, said the court.”
