GST Registration Cancellation Set Aside Subject to Compliance with Filing and Payment

Case Details:

• Case Name: Samir Kumar Ghosh vs. The State of West Bengal & Ors.

• Court: Calcutta High Court

• Petition No.: WPA 9482 of 2025

• Category of Dispute: GST Registration Cancellation & Revocation

• Date of Judgment: 07.05.2025

• Relevant Sections: Section 29 & 30 of CGST/WBGST Act, 2017; Rule 23 of CGST Rules, 2017

• Bench: Hon’ble Justice Raja Basu Chowdhury

Facts of the Case

(Ref: Para 1–2)

1. The petitioner’s GST registration was cancelled on 06.12.2021 under CGST/WBGST Act due to non-filing of returns for over six months.

2. A show cause notice dated 15.11.2021 alleged continuous default in return filing.

3. The petitioner claimed that COVID-19 pandemic caused business losses, preventing timely payment of GST dues and return filing.

4. The petitioner expressed readiness to restart business and to pay all outstanding tax, interest, penalty, and fine.

Question(s) in Consideration

(Ref: Para 3–4)

• Whether cancellation of GST registration for non-filing of returns should be set aside when the taxpayer expresses willingness to comply and clear all dues.

• Whether restoration of registration serves the interest of revenue despite past defaults.

Observation of Court

(Ref: Para 3–5)

1. Cancellation was solely due to non-filing of returns, not due to fraudulent or dubious tax evasion practices.

2. Suspension/cancellation hinders revenue collection as the petitioner cannot raise invoices or do business, adversely affecting GST recovery.

3. Restoration would enable the petitioner to comply and generate taxable turnover, aiding revenue.

4. Referred to Subhankar Golder v. Assistant Commissioner of State Tax (MAT 639 of 2024, dated 09.04.2024) where similar relief was granted.

Judgment of the Court

(Ref: Para 5–7)

1. Order dated 06.12.2021 cancelling GST registration set aside, subject to petitioner filing all pending returns and paying due tax, interest, fine, and penalty within four weeks from receipt of the order.

2. Respondents to activate GST portal within one week for compliance.

3. If conditions are not met within the stipulated period, writ petition will stand dismissed automatically.

4. No order as to costs.

Between Fine Lines (Simple Summary)

• GST registration cancelled for non-filing of returns.

• Petitioner cited COVID-19 hardships and readiness to clear dues.

• Court noted no fraudulent intent; cancellation harms revenue recovery.

• Registration restored conditionally, requiring filing of all returns and payment of dues within 4 weeks.

• Failure to comply will nullify relief automatically.

Summary of Referred Cases