Case: Biswajit Basu v. Superintendent of Central Goods and Services Tax & Central Excise, Budge Budge, Range-1, Joka Division, Kolkata South Commissionerate & Ors.
Court: Calcutta High Court
Petition No.: WPA 21575 of 2024
Date of Judgment: 06.02.2025
Category of Dispute: Cancellation and Restoration of Registration
Relevant Sections: Section 29, Section 30 of the CGST Act, 2017; Rule 23 of the CGST Rules, 2017
Facts (para 2–4)
The petitioner’s GST registration was cancelled by the department on the ground of non-filing of returns. After cancellation, the petitioner cleared all outstanding dues and expressed readiness to pay any further dues, including penalties, as required for restoration of the registration. The petitioner relied on a judgment dated 09.04.2024 delivered by the Hon’ble Chief Justice and Justice Hiranmay Bhattacharyya, wherein similar relief had been granted.
Questions before the Court (para 4–5)
The key issue before the Court was whether the cancellation of GST registration for non-filing of returns could be set aside and registration restored if the taxpayer had cleared dues and agreed to comply with conditions imposed by the department.
Observations (para 6–8)
The Court noted that the petitioner had made payment of revenue dues after cancellation and had agreed to pay any further outstanding revenue, including penalties, to regularize his compliance. The Court emphasized that the statutory framework under Section 30 of the CGST Act read with Rule 23 of the CGST Rules allows for revocation of cancellation if conditions are satisfied within time. In line with earlier precedents, the Court found it appropriate to grant an opportunity to the taxpayer by restoring the registration, while safeguarding revenue interests by making restoration conditional on timely payment of all dues (para 6–8).
Judgment (para 9–11)
The Court disposed of the writ petition by setting aside the cancellation order and directing the CGST/WBGST authorities to restore the registration and reopen the GST portal for 45 days. Within this window, the petitioner was required to deposit all revenue dues, along with any penalties as indicated by the department, within 15 working days. If the petitioner failed to make the payments, the authorities were free to re-block the portal and cancel the registration again. No costs were awarded.
Table of Cases Referred
| Case | Citation/Details | Verdict |
|---|---|---|
| Judgment dated 09.04.2024 by Hon’ble Chief Justice & Justice Hiranmay Bhattacharyya (Calcutta HC) | Relied upon by petitioner | Registration restored in similar circumstances upon payment of dues |
Between Fine Lines
This judgment reaffirms that cancellation of GST registration for non-filing of returns is not an irreversible step. If taxpayers make good their past defaults and deposit dues promptly, courts are inclined to restore registrations to ensure trade continuity. However, the relief is conditional—non-compliance within the stipulated timeline will allow the authorities to cancel again without further indulgence.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
