2024 (6) TMI 664 - HC - GST

Cancellation of registration of petitioner - non-filing of returns - appeal dismissed on the ground of limitation - HELD THAT - The registration of the petitioner had been cancelled on the ground of non-filing of returns. It is not the case of the respondents that the petitioner had been adopting dubious process to evade tax. Taking note of the fact that the suspension/revocation of license would be counterproductive and works against the interest of the revenue since, the petitioner in such a case would not able to carry on his business in the sense that no invoice can be raised by the petitioner and ultimately would impact recovery of tax, the respondents should take a pragmatic view in the matter and permit the petitioner to carry on his business. The order cancelling the registration of the petitioner set aside subject to the conditions that the petitioner files his returns for the entire period of default and pays requisite amount of tax and interest and fine and penalty - petition disposed off.

Summary

Issues involved:
The judgment involves the cancellation of registration under the Central Goods and Services Tax Act, 2017/West Bengal Goods and Services Tax Act, 2017 and the subsequent appeal process.

Summary:

Cancellation of Registration:
The petitioner filed a writ petition seeking restoration of registration under the Central Goods and Services Tax Act, 2017/West Bengal Goods and Services Tax Act, 2017 after it was cancelled due to non-filing of returns. The petitioner's appeal against the cancellation was dismissed on the ground of limitation.

Petitioner's Submission:
The petitioner's advocate argued that the petitioner was willing to comply with the Act by filing returns but failed to respond to the show cause notice. Citing a previous judgment, it was requested to set aside the cancellation orders and allow the petitioner to file returns.

Respondent's Argument:
The respondent contended that the petitioner did not comply with statutory provisions, leading to the cancellation of registration.

Court's Decision:
The court noted that the cancellation was based on non-filing of returns and not on tax evasion. Considering the impact on revenue and the petitioner's business, the court proposed to set aside the cancellation order subject to the petitioner filing returns and paying the necessary tax, interest, fine, and penalty.

Conditions for Restoration:
The court directed the petitioner to comply with the conditions within four weeks for restoration of registration. Failure to comply would result in dismissal of the writ petition.

Operational Directions:
The respondents were instructed to open the portal for filing returns and payment within two weeks to facilitate compliance with the court's directions.

Disposal of Writ Petition:
The writ petition was disposed of without costs, with all parties required to act based on the official copy of the order downloaded from the court's website.