Case Summary
Case Title: Anjali Sarkar Lakra vs. Assistant Commissioner, Coochbehar Division, SGST Office & Ors.
Court: Calcutta High Court, Circuit Bench at Jalpaiguri (Appellate Side)
Petition Number: WPA 2554 of 2024
Date of Judgment: 27 January 2025
Category of Dispute: Cancellation of GST Registration (Non-filing of Returns)
Relevant Sections: Section 107, CGST/West Bengal GST Act, 2017; Rule 21, CGST Rules
Facts
(Paras 2–3, 5 of judgment)
The petitioner, a proprietor, was issued a show cause notice dated 8 August 2023 proposing cancellation of GST registration solely on the ground of non-filing of returns for six consecutive months. Consequent cancellation order dated 14 September 2023 was passed, followed by rejection of appeal on 11 November 2024. The petitioner approached the High Court challenging the cancellation.
Questions for Determination
(Para 2)
The key issue before the Court was whether cancellation of GST registration merely for non-filing of returns should stand, or whether restoration could be allowed subject to compliance by filing pending returns and paying dues.
Observations
(Paras 3–12)
The Court relied heavily on precedents:
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Subhankar Golder vs. Assistant Commissioner of State Tax (Calcutta HC, 2024) where restoration was permitted if returns and dues were filed within three weeks.
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Rana Chowdhury vs. State of West Bengal (Calcutta HC, 2024) where similar relief was granted, observing that outright cancellation works against revenue’s interest since business cannot be conducted and tax recovery is hampered.
The Court noted that there was no allegation of fraudulent activity or tax evasion by the petitioner; the default was only non-filing of returns. Hence, a pragmatic approach was warranted.
Judgement
(Paras 4–5 of order)
The Court quashed the show cause notice dated 8 August 2023, the cancellation order dated 14 September 2023, and the appellate order dated 11 November 2024. It directed restoration of GST registration subject to the petitioner filing all pending returns and paying tax, interest, fine, penalty, and/or late fees within four weeks.
If the petitioner fails to comply, the writ petition shall stand automatically dismissed, and cancellation would revive without further reference to Court. Authorities were directed to open the GST portal within one week to facilitate compliance.
Cases Referred (with summary in tabular form)
| Case | Court & Year | Issue | Verdict |
|---|---|---|---|
| Subhankar Golder vs. Assistant Commissioner of State Tax | Calcutta HC, 2024 | Cancellation of GST registration for non-filing of returns | Registration restored if returns filed and dues paid within three weeks; otherwise order dismissed. |
| Rana Chowdhury vs. State of West Bengal | Calcutta HC, 2024 | Cancellation of registration for non-filing of returns | Cancellation set aside; registration restored subject to filing returns and dues payment within four weeks. |
Between Fine Lines
For businesses, this judgment emphasizes that GST registration cancellations for procedural defaults like non-filing of returns can be remedied. Courts are adopting a revenue-friendly yet taxpayer-supportive approach, allowing restoration provided pending returns and dues are cleared. Businesses should act swiftly within timelines to avoid permanent cancellation.
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