Calcutta HC orders Restoration of GST Registration Upon Payment of Dues

Harekrishna Sahoo Vs State of West Bengal (Calcutta High Court)

The Calcutta High Court addressed the case of Harekrishna Sahoo vs. State of West Bengal, focusing on the petitioner’s registration cancellation due to alleged non-filing of revenue returns. The petitioner acknowledged the cancellation and stated that all due revenue had been paid. They also expressed willingness to settle any outstanding amounts required for registration restoration, citing a precedent set by a prior judgment from the Chief Justice and Justice Hiranmay Bhattacharyya. The court, after considering the arguments from both parties, decided to set aside the cancellation orders issued by the respondent CGST/WBGST authorities. The court directed the authorities to restore the petitioner’s registration and open the portal for a 45-day period. This window allows the petitioner to pay any remaining revenue dues, including penalties, as specified by the respondent authority within 15 working days.

The court’s directive is contingent on the petitioner fulfilling the payment obligations. If the petitioner fails to make the payments within the allotted 45-day period after the respondent authority communicates the due amount, the authorities are granted the right to re-block the portal and cancel the registration again. The court’s order aims to provide the petitioner an opportunity to rectify the situation by settling outstanding dues, while also ensuring compliance with revenue regulations. The judgment emphasizes a procedural approach, allowing for the restoration of registration upon fulfillment of financial obligations, and reiterates the authority’s right to re-impose penalties if the petitioner fails to comply. The court concluded by stating that there would be no order as to costs and instructed all parties to rely on the server copy of the order downloaded from the court’s official website.

FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT

1. Heard learned counsel appearing for the parties.

2. The main issue involved in this writ petition relates to the cancellation of petitioner’s registration on the ground of non-filing of  Petitioner submits that after the cancellation of its registration, it has paid all the revenue due and further agrees to pay any revenue due which is required to be paid for restoring its registration and relies on a judgement dated 09.04.2024 passed by the Hon’ble Chief Justice and the Hon’ble Justice Hiranmay Bhattacharyya.

3. Considering the submissions of the parties, this writ petition being WAP 28923 of 2024 is disposed of by setting aside the impugned orders by both the concerned authorities by directing and the respondent CGST/WBGST  authority  to  restore  the  petitioner’s registration and open the portal for a period of 45 days from date of communication of this order by the counsel of the respondent authority to enable the petitioner to make the payment of revenue due as well as any other due including penalty to be indicated by the respondent authority concerned within a period of 15 working days. if the petitioner fails to make the payment of revenue due after indication of the amount by the GST authority, the respondent authority concerned shall be free to block the portal again and cancel the registration.

4. There shall be no order as to costs.

5. All parties shall act on the server copy of this order duly downloaded from the official website of this Court.