Bengal Co-operative Labour Contract and Construction and Anr. Vs State of West Bengal & Ors. (Calcutta High Court)
In Bengal Co-operative Labour Contract and Construction & Anr. vs State of West Bengal & Ors., the Calcutta High Court examined the cancellation of GST registration due to non-filing of returns for six consecutive months. The petitioners challenged the show cause notice and cancellation orders, citing their appeal under Section 107 of the GST Act. Referring to precedents such as Subhankar Golder vs Assistant Commissioner of State Tax and Rana Chowdhury vs State of West Bengal, the court emphasized that business continuity is crucial for tax recovery and mandated a practical approach to such cases.
The court quashed the cancellation order, granting the petitioners four weeks to file pending GST returns and pay the requisite taxes, interest, penalties, and fines. Authorities were directed to reopen the GST portal within a week to facilitate compliance. The court made it clear that failure to meet the conditions would automatically dismiss the writ petition, reinstating the cancellation. This judgment highlights the balance between enforcement of tax laws and ensuring businesses can continue operations while remaining compliant with statutory obligations.
Assessee was represented by Advocate Himangshu Kumar Ray, Abhilash Mittal and Kanchan Singha.
