C.P. George & Anr. Vs State of West Bengal & Ors. (Calcutta High Court)
In the case of C.P. George & Anr. vs State of West Bengal & Ors., the Calcutta High Court addressed the cancellation of GST registration due to the non-filing of tax returns for six consecutive months. The petitioners challenged the show cause notice and cancellation orders, seeking relief to restore their GST registration. Referring to prior judgments, including Subhankar Golder vs Assistant Commissioner of State Tax and Rana Chowdhury vs State of West Bengal, the court emphasized a pragmatic approach to balance revenue interests with allowing businesses to operate. Both judgments highlighted that barring a business from functioning could counteract tax recovery objectives, as tax dues would remain uncollected.
Following these precedents, the court set aside the cancellation order, allowing the petitioners a final opportunity to file outstanding GST returns and pay all dues, including taxes, interest, fines, and penalties, within four weeks. It directed the authorities to reopen the GST portal to facilitate compliance. However, failure to meet the conditions within the stipulated period would automatically render the writ petition dismissed, reinstating the cancellation. The decision underscores the court’s inclination to prioritize compliance over punitive measures while maintaining accountability.
