Dismissal of GST Registration Appeal Won’t Prejudice Fresh Application: Calcutta HC

Suresh Kumar Chaudhary Vs Assistant Commissioner (Calcutta High Court)

Dismissal of writ petition filed against order of cancellation would not cause prejudice to Registered Person applying for fresh GST registration

The Hon’ble Calcutta High Court in the case of Suresh Kumar Chaudhary v. Assistant Commissioner [MAT No. 2012 of 2023 dated January 9, 2024] dismissed the writ petition filed by the Registered Person for revocation of GST registration as the Registration was obtained based on forged documents. However, the Hon’ble High Court clarified that the dismissal of the appeal and writ petition filed against the order of cancellation of registration in the aforesaid scenario, would not cause prejudice to the Registered Person applying for fresh registration with genuine documents.

Facts:

Suresh Kumar Chaudhary (“the Petitioner”) filed a writ petition against the Order passed by the Appellate Authority (“the Impugned Order”) wherein the Revenue Department (“the Respondent”) refused to revoke the registration granted to the Petitioner under the Central Goods and Services Tax Act, 2017 (“the CGST Act”).

Issue:

Whether the dismissal of writ petition filed against order of cancellation would cause prejudice to the Registered Person applying for fresh registration with genuine documents?

Held:

The Hon’ble Calcutta High Court in the case of MAT No. 2012 of 2023 held as under:

• Opined that, the forged document was used to obtain registration which would come within the purview of fraud. Therefore, the Respondent Appellate Authority was correct in passing the Impugned Order.
•  Held that, the writ petition is dismissed.
•  Clarified that, the dismissal of appeal and writ petition would not cause prejudice to the Appellant applying for fresh registration with genuine documents.

Conclusion: The Calcutta High Court’s decision in the case of Suresh Kumar Chaudhary vs. Assistant Commissioner signifies a strict stance against fraudulent practices in obtaining GST registration. While dismissing the appeal and writ petition, the court ensures that such dismissals do not unfairly impact individuals seeking fresh registration with genuine documentation. This judgment underscores the importance of upholding the integrity of the registration process while providing an avenue for rectification through lawful means.

FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT

Upon perusal of the averments made in the application for condonation of delay, we satisfied that sufficient grounds have been made to file this appeal.

Accordingly, CAN 2 of 2024 is allowed.

The writ petition was filed challenging the order dismissing the appeal filed by the appellant challenging the order refusing to revoke of revocation of licence granted to the appellant under the GST Act. On going through the order passed by the Appellate Authority, we find that there is a categorical finding that at the time when the registration was obtained, the appellant had uploaded the electricity payment receipt, which was found to be a forged document and as also the rental agreement. Those fraud vitiate every solemn act. Therefore, the Appellate Authority was well-justified in dismissed the appeal petition and we find no grounds to interfere with the same order.

For the above reasons, the appeal as well as the writ petition are dismissed.

However, dismissal of appeal and the writ petition will not prejudice the appellant from applying that for fresh registration with all genuine documents.

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