Silchar Municipal Board vs. The Union Of INDIA And 4 Ors
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The petitioner, Silchar Municipal Board, an autonomous body, had its GST registration cancelled by the Proper Officer via an Order dated 17.10.2019, following a Show Cause Notice dated 16.04.2019. The cancellation was purportedly due to the petitioner failing to file returns for six consecutive months. The petitioner filed a writ petition challenging this order, highlighting that cancellation would hinder its constitutional duties. This Court, by an interim order dated 13.05.2022, suspended the cancellation order, directed the petitioner to pay all GST dues, and instructed the GST Department to facilitate portal access and inform the petitioner of outstanding taxes. The petitioner subsequently claimed to have cleared all dues and been paying them regularly.
Held
The Court held that the impugned order dated 17.10.2019, which cancelled the GST registration of the Silchar Municipal Board, should be set aside. This decision was based on the petitioner's subsequent compliance with its GST obligations. The Court noted that the petitioner had cleared all its dues under the GST Act after the interim order dated 13.05.2022 and had been depositing its dues regularly on a monthly basis. Consequently, the interim order was made absolute, as suggested by the CGST Standing Counsel. The Court acknowledged the assistance rendered by the Additional Advocate General, Assam. The writ petition was allowed to the extent indicated.
Key Issues
1. Whether the cancellation of the GST registration of the Silchar Municipal Board, an autonomous body with constitutional duties, was justified, and if so, what relief can be granted, considering the provisions of the Central Goods and Services Tax Act, 2017. Petitioner's contention: The cancellation of GST registration would impede the Municipal Board's ability to discharge its constitutional duties. The petitioner has since cleared all outstanding dues and is now paying them regularly. Revenue's contention: Given that the petitioner has been paying its GST dues regularly after the interim order, the interim order can be made absolute.
Sections Cited
Central Goods and Services Tax Act, 2017
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER Date : 21.03.2025
Heard Mr. R.S. Mishra, learned counsel for the petitioner; Mr. S.S. Roy, learned Central Government Counsel for the respondent no. 1; Mr. S.C. Keyal, learned Standing Counsel, CGST for the respondent nos. 2 – 5. 2. Mr. D. Mazumdar, learned Additional Advocate General, Assam who was requested to render assistance in the case by the Order dated 13.05.2022, is also present.
Pursuant to a Show Cause Notice dated 16.04.2019 in Form GST REG-17, the registration of the petitioner, Silchar Municipal Board under the Central Goods and Services Tax Act, 2017 came to be cancelled by an Order dated 17.10.2019 by the Proper Officer. The Show Cause Notice dated 16.04.2019 was issued purportedly on the ground that the Page No. 3/4 petitioner Municipal Board did not file returns for a continuous period of six months.
This Court taking note of the fact that the petitioner Municipal Board has constitutional duties to discharge the cancellation of its GST Registration would create hindrance in the process of discharging its constitutional duties. Taking such prima facie view and taking note of the public element associated with the order of cancellation of GST Registration, this Court, by an interim order dated 13.05.2022, had kept the Order dated 17.10.2019 under suspension with a further direction to the petitioner Municipal Board to pay all the required dues under the GST Act. It was further observed in the Order dated 13.05.2022 that the GST Department shall make available all the facilities including opening of the portal, if necessary, during the interregnum and the GST authorities shall inform the petitioner Municipal Board about the required taxes to be paid so as to facilitate the petitioner Municipal Board to make payment of all its dues under the GST Act immediately thereafter.
Mr. Mishra has submitted that after the interim order dated 13.05.2022, the petitioner Municipal Board has deposited all its dues under the GST Act and since then the petitioner Municipal Board has been paying its dues regularly/ monthly.
Mr. Keyal, learned Standing Counsel, CGST has submitted that since the petitioner Municipal Board has been paying its dues regularly, the interim order passed on 13.0.2022 can be made absolute.
In view of the fact that the petitioner Municipal Board after 13.05.2022 has cleared all its dues under the GST Act and since then, has been depositing its dues under the GST Act regularly/monthly, the impugned order dated 17.10.2019 is set aside by making the interim order dated 13.05.2022, as suggested by Mr. Keyal, learned Standing Counsel, CGST, absolute.
The assistance rendered by Mr. Mazumdar, learned Additional Advocate General, Assam in the case is duly acknowledged.
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The writ petition is accordingly, allowed to the extent indicated above. No cost.
JUDGE Comparing Assistant
Reproduced from the public record of the Gauhati High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.