GST Compliance Default: Calcutta HC directs Dept to restore GST Registration within 7 Days

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By Rasheela Basheer – On March 4, 2022 10:02 am

GST - Compliance Default - Calcutta High Court - Department - GST Registration - 7days - Taxscan

A two-judge bench of the Calcutta High Court, while allowing a writ petition against the order of the GST department to revoke GST registration due to non-filing of returns, held that the registration must be restored in 7 days.

The appellant, Latika Ghosh, approached the High Court for restoration of their certificate of registration under the provisions of West Bengal Goods & Service Tax Act and Central Goods & Service Tax Act. Earlier, the authorities issued show cause notice dated 06.06.2018 proposing to cancel the certificate of registration of the appellant for the reason that they have not filed their returns for a continuous period of six months. Soon after receipt of the notice, the appellant had filed the return for the period and paid the tax. According to the appellant, late fee for remittance of tax and interest has been paid. However, the GST registration of the appellants were finally revoked.

Justice T S Sivagnanam and Hiranmay Bhattacharyya observed that the order of cancellation of the registration made by the state authorities as well as central authorities are unsustainable and the order rejecting the application for revocation dated 06.10.2021 is also not tenable.

Allowing the writ petition, the Court observed that “the authorities are directed to restore the appellant’s certificate of registration under the provisions of both West Bengal Goods & Service Tax Act and Central Goods & Service Tax Act within one week from the date of receipt of the copy of this order. We grant liberty to the authorities to issue show cause notice to the appellant. In case there is any shortfall in remittance of the late fees and interest payable by the appellant and if, according to the appellant, all dues have been settled, they are entitled to submit a reply which shall be considered and a speaking order be passed in accordance with law.”

With regard to the contention of the appellant that show cause notice dated 11.09.2021 and the order of rejection of the application for revocation dated 06.10.2021 are being passed by the central authorities and not by the state authorities as submitted by the appellant, the Court observed that “From the e-mail communication sent, it is not clear whether it is the state authorities or the central authorities. In any event, we are convinced that the exercise of jurisdiction of any of the authorities is arbitrary and there is violation of principles of natural justice and the orders are devoid of reasons which would render unsustainable in the eyes of law.”

Advocates Mrs. Rita Mukherjee Mr. Himangshu Kr. Ray and Mr. Y. Sundariya appeared for the petitioners.To Read the full text of the Order CLICK HERE

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