Case Law Details
Pronoti Sarkar Vs Union of India And 4 Ors (Gauhati High Court)
In Pronoti Sarkar vs. Union of India & Ors., the Gauhati High Court addressed the cancellation of the petitioner’s GST registration due to non-filing of returns. The petitioner, engaged in executing works contracts and trading hardware goods, cited health issues and a lack of knowledge about online compliance as reasons for the delay. A show cause notice was issued on July 8, 2022, followed by the cancellation order on August 10, 2022. The petitioner’s appeal against this cancellation was still pending before the appellate authority when the matter was brought before the High Court.
The petitioner argued that the cancellation had severely impacted business operations and sought urgent restoration of the registration. The court took note of the grievance and sought instructions from the GST authorities on whether immediate relief could be provided. The Standing Counsel for GST informed the court that the registration could be reinstated under Rule 23 of the CGST Rules, provided the petitioner filed up-to-date returns and paid any outstanding statutory dues.
The petitioner’s counsel stated that all necessary dues had already been deposited and assured compliance with any additional payments required under the rules. Given the agreement between both parties, the court found no reason to keep the petition pending. Citing procedural fairness, the court directed the tax authorities to restore the petitioner’s GST registration immediately upon fulfillment of compliance requirements.
Judicial precedents, including M/s. Lakshmi Enterprises vs. Assistant Commissioner of Commercial Taxes (Karnataka HC, 2021), have established that businesses should be given an opportunity to rectify compliance failures rather than face disproportionate consequences. The decision aligns with previous rulings emphasizing procedural fairness in tax matters. The case reinforces the principle that taxpayers should be allowed to resume operations upon meeting statutory obligations, ensuring continuity in business and revenue collection.
FULL TEXT OF THE JUDGMENT/ORDER OF GAUHATI HIGH COURT
Heard Shri RS Mishra, learned counsel for the writ petitioner. Also heard Shri S.C. Keyal, learned Standing Counsel, GST, appearing for the respondents.
2. The petitioner firm is engaged in the business of executing works contract and trading of hardware goods and, therefore, is required to have GST The petitioner had accordingly obtained GST registration but due to certain reasons beyond the control of the petitioner, which includes the ill health and lack of knowledge about online compliances, the petitioner could not file its return regularly. Situated thus, a show cause notice dated 08.07.2022 was issued to the petitioner as to why its GST registration should not be cancelled. Thereafter, the impugned order dated 10.08.2022 has been issued cancelling the GST registration of the petitioner.
3. The appeal preferred by the petitioner against the impugned order dated 08.2022 is pending before the appellate authority.
4. Shri Mishra, the learned counsel submits that due to cancellation of the GST registration, the petitioner’s business activities has been seriously Under the circumstances, an urgent order for restoration of the GST registration is required to be passed by this Court.
5. Taking note of the grievance of the petitioner, this Court has directed the learned Standing Counsel, GST to obtain instructions and appraise this Court as to whether, any immediate relief can be granted to the petitioner.
6. Today, when the matter is called up, Shri Keyal, learned Standing Counsel submits on instruction that cancellation of the GST registration of the petitioner can be revoked with immediate effect if he files up-to-date return and pays the tax amount due along with other statutory due as per Rule 23 of the CGST Rules,
7. Shri Mishra, learned counsel for the petitioner submits that his client has already deposited all necessary dues but if any further amount is still payable under the Rules, the same will be paid.
8. If that be so, there is no justification for keeping this matter pending before this Court any Therefore, with the consent of both the sides, this writ petition is being disposed of by directing the respondents to restore the GST registration of the petitioner immediately on filing return along with deposit of statutory dues by the petitioner, in accordance with the Rules.
9. The aforesaid exercise be carried out as expeditiously as possible.
10. With the above observation, the writ petition stands disposed of.
Author Bio
