2024 (5) TMI 1432 - HC - GST

Cancellation of registration of the petitioner - petitioner is a person hostile to the department or not - evasion of tax - HELD THAT - Although, the cancellation order of the petitioner s registration dated 28th September, 2022 records that the petitioner had submitted a response, it is found from the pleadings that no response had, in fact, been filed by the petitioner. On the contrary, the petitioner had also responded to the show cause dated 12th October 2022 issued in connection with his application for rejection of the order of cancellation. The said response to the show cause, however, does not appear to have been considered at all by the proper officer. The reason for rejection of the application for revocation of cancellation of registration vide order dated 18th November, 2022 is non submission of total purchase and sale statement from the date of cancellation till the date of response. The reasons for not revoking the cancellation has been clearly spelt out in the order dated 18th November 2022. It appears that the petitioner having not uploaded/submitted the total purchase and sale statements from the date of cancellation, his application had been rejected. Having regard to the aforesaid, the cancellation of petitioner s registration should be revoked with a further direction on the petitioner to forthwith file his returns along with documents as per requirement for the respondents to determine the tax liability. Once, the returns are filed, the respondents shall determine the liability, if at all. The order passed by the appellate authority, order of cancellation of registration dated 28th September 2022 and the order of rejection dated 18th November 2022 is set aside, subject to the condition that the petitioner complies with the directions issued by the respondents and file his returns for the entire period of default and pays requisite amount of tax, interest, fine and penalty. Petition disposed off.

Summary

Issues involved: Challenge to cancellation of registration under the WBGST Act, 2017.

Summary:
The writ application challenges the cancellation of the petitioner's registration under the WBGST Act, 2017. The petitioner failed to respond to a show cause notice leading to the cancellation order. A subsequent application for revocation was rejected without proper consideration of the petitioner's response. The petitioner argued that the cancellation would hinder business operations and revenue interests. The State did not dispute the absence of any liability on the petitioner. The court noted discrepancies in the handling of the case by the proper officer and the appellate authority. Despite a delay in filing an appeal, the court decided to revoke the cancellation and directed the petitioner to comply with tax requirements within a specified timeframe. Failure to comply would result in dismissal of the petition. The court emphasized the importance of allowing the petitioner to continue business operations for revenue purposes. The judgment was issued with directions for compliance and restoration of registration if conditions are met within the given timeline.

In conclusion, the court set aside previous orders and directed the petitioner to fulfill tax obligations within a specified period for registration restoration. Failure to comply would lead to dismissal of the petition. The court emphasized the importance of revenue interests and the need for the petitioner to continue business operations.