Meheraj Midde Vs Superintendent of Central GST & CX (Calcutta High Court)
The Calcutta High Court has ordered the revival of a Goods and Services Tax (GST) registration for an individual, Meheraj Midde, that had been canceled by the tax authorities. The court’s ruling in the case of Meheraj Midde vs. Superintendent of Central GST & CX highlights a pragmatic approach to tax compliance and revenue collection.
The petitioner’s GST registration was canceled on April 10, 2023, due to his failure to file returns under Section 39 of the GST Act. The petitioner, represented by his counsel, stated his willingness to continue his business and to pay all outstanding taxes, interest, fines, and penalties. The court noted that it was not a case where the petitioner was using dubious methods to evade tax but rather a case of non-filing of returns.
The High Court took the view that canceling the registration was “counter-productive” and against the interest of the revenue department. By canceling the registration, the petitioner would be unable to issue invoices, which would ultimately hinder the collection of future tax revenue. This perspective guided the court to a solution that both ensured compliance and benefited the revenue.
The court set aside the cancellation order on the condition that the petitioner files all pending returns and pays all applicable taxes, interest, and penalties within a four-week period. To enable compliance, the court directed the GST authorities to reactivate the petitioner’s portal and login credentials within one week. The order explicitly stated that if the petitioner fails to meet these conditions, the writ petition would be automatically dismissed, and he would not receive the benefit of the court’s order. This judgment serves as a precedent for taking a balanced approach to compliance issues, prioritizing the recovery of revenue over a punitive measure that might harm a business.
