GST registration cancellation for six-month non-filing of returns set aside, conditional on filing all returns and paying dues.

Registration under the CGST/WBGST Acts was cancelled for failure to furnish returns for a continuous six-month period. The statutory appeal was rejected as time-barred beyond the condonable limit, thereby affirming the cancellation; however, the HC held that, given the taxpayer's status as an individual small retailer, an additional opportunity was warranted to regularise compliance. The HC set aside the cancellation order on conditions that the taxpayer file all pending returns for the entire default period and pay the requisite tax, interest, fine, and penalty, failing which the benefit would not enure. Petition allowed.

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Issues Involved: Appeal against cancellation of registration under CGST & WBGST Act, 2017 due to failure to file returns for six months; Dismissal of appeal by statutory appellate authority as belated.

Summary:
The intra-Court appeal challenged the cancellation of registration under CGST & WBGST Act, 2017, citing failure to file returns for six months. The statutory appellate authority dismissed the appeal as belated. After hearing both parties, the Court decided to provide the appellant, a small retailer of imitation jewelry, with an opportunity to rectify the situation.

The Court allowed the appeal, connected application, and writ petition, setting aside the registration cancellation order. However, the appellant must file returns for the default period, pay the necessary tax, interest, fine, and penalty within three weeks. Failure to comply will result in automatic dismissal of the writ petition.

To facilitate compliance, the respondents are directed to open the portal for filing returns and remitting tax, interest, penalty, and fine by the appellant.

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