2025 (2) TMI 585 - HC - GST

GST registration restored conditionally on filing outstanding returns and paying tax, interest, penalties within four weeks

HC set aside the show-cause notice, cancellation order and appellate order and directed restoration of the petitioner's GST registration on condition that ... Cancellation of GST registration of the petitioner - petitioner did not file its return in accordance with law for consecutive six months - HELD THAT:- The issue has already received the attention of the Hon’ble Division Bench in the matter of Subhankar Golder Vs. Assistant Commissioner of State Tax [2024 (5) TMI 1262 - CALCUTTA HIGH COURT]. The Hon’ble Division Bench had observed that 'we are of the view that the appellant can be provided with one more opportunity to remedy the bridge as the appellant being an individual since a small retailer of imitation jewellery, we deem it appropriate that the appellant should be permitted to remedy the bridge.' The show cause notice dated January 14, 2023 at page 32 to the writ petition, the order of cancellation of GST registration dated January 11, 2023 at page 39 to the writ petition and the order of the appellate authority dated December 24, 2024 at page 59 to the writ petition stand set aside and quashed subject to petitioner files his GST returns for the entire period of default and pays requisite amount of tax, interest, fine and penalty and/or late fees within four weeks from date. Subject to fulfilment of the above conditions by the petitioner the GST registration of the petitioner shall be restored by the jurisdictional officer. However, if the petitioner fails to comply with the direction and fulfil the conditions as above, the benefit of this order will not enure to the petitioner and the writ petition would stand automatically dismissed, without any further reference to this court. Consequently, the cancellation of the GST registration would be restored and effected with an immediate effect. Petition disposed off. The Court considered the issue of cancellation of GST registration due to non-filing of returns for consecutive six months. The petitioner filed an appeal under Section 107 of the Central Goods and Services Tax Act, 2017/West Bengal Goods and Services Tax Act, 2017. The Court referred to previous decisions where individuals were given opportunities to remedy the default by filing returns and paying the requisite tax, interest, fine, and penalty. The Court emphasized the importance of allowing small retailers to rectify their non-compliance rather than canceling their registration, which could hinder business operations and tax recovery.The Court set aside the show cause notice, the order of cancellation of GST registration, and the order of the appellate authority, subject to the petitioner filing GST returns for the entire default period and paying the necessary amounts within four weeks. If the petitioner complies, their GST registration will be restored. However, failure to comply will result in the dismissal of the writ petition and immediate restoration of the cancellation of GST registration. The respondent authorities were directed to open the portal for the petitioner to fulfill the requirements within a specified timeframe.The Court disposed of the writ petition without costs, emphasizing that the allegations in the petition were not admitted by the respondents. The judgment focused on providing an opportunity for the petitioner to rectify the non-compliance and avoid the cancellation of GST registration, highlighting the importance of allowing businesses to continue operations while ensuring tax compliance.