2024 (7) TMI 1029 - HC - GST

Cancellation of registration of the petitioner - failure to file returns for a continuous period of six months - HELD THAT - Having regard to the case made out by the petitioner that the petitioner was prevented by sufficient cause from firstly responding to the show cause and secondly from filing of an application for revocation of the order of cancellation of registration, an opportunity should be granted to the petitioner, who is only a small businessman, to continue with his business and profession, especially when it is not the case of the respondents that the petitioner had been adapting dubious process to evade tax. Having regard to the aforesaid and taking note of the direction issued by the Hon ble Division Bench of this Court in the case of SUBHANKAR GOLDER VERSUS ASSISTANT COMMISSIONER OF STATE TAX, SERAMPORE CHARGE ORS. 2024 (5) TMI 1262 - CALCUTTA HIGH COURT , it is proposed to set aside the order dated 19th January, 2023, cancelling the registration of the petitioner under the said Act, subject to the condition that the petitioner files his returns for the entire period of default and pays requisite amount of tax, interest, fine and penalty, if not already paid. The writ petition is disposed of without any order as to costs.

Summary

Issues involved:
Challenge to the cancellation of registration under the Central/West Bengal Goods and Services Tax Act, 2017.

Analysis:
The judgment pertains to a writ petition challenging the cancellation of registration under the Central/West Bengal Goods and Services Tax Act, 2017. The petitioner's registration was cancelled due to non-filing of returns for six consecutive months following a show cause notice. The petitioner, represented by Mr. Dey, contended that unforeseen circumstances prevented them from responding to the show cause and applying for revocation of the cancellation order. The petitioner expressed willingness to comply with the Act and undertake payment of arrears. On the other hand, Mr. Siddiqui appeared for the State-respondents.

Upon considering the arguments and evidence, the Honorable Judge opined that the petitioner, a small businessman, should be given an opportunity to continue their business. It was noted that suspending or revoking the license would hinder revenue collection as the petitioner would be unable to raise invoices, impacting tax recovery. Referring to a previous case, the Judge decided to set aside the cancellation order subject to the condition that the petitioner files returns for the default period and pays the necessary tax, interest, fine, and penalty.

The judgment stipulated a timeframe for compliance, directing the restoration of registration if conditions are met within four weeks. Failure to comply would result in the dismissal of the writ petition. The respondents were instructed to activate the portal promptly for the petitioner's compliance. Notably, since no affidavit-in-opposition was submitted, the allegations in the writ petition were not deemed admitted by the respondents. The writ petition was disposed of without costs, with all parties instructed to act based on the official server copy of the order downloaded from the Court's website.