Om Ultimate Techno INDIA Private Limited vs. Principal Chief Commissioner Of CGST And Central Excise, West Bengal And Ors.
Original PDF →Facts
The petitioner, Om Ultimate Techno India Private Limited, challenged an order dated February 18, 2021, passed by the CGST authorities, which cancelled its GST registration. The cancellation was primarily on the ground of non-filing of returns. The petitioner argued that the absence of registration prevented it from conducting business and raising invoices, which would ultimately impact tax recovery for the revenue. The Court noted that the petitioner was not accused of tax evasion. An appellate order dated August 18, 2025, was also challenged.
Held
The Court held that cancelling GST registration solely for non-filing of returns, without any allegation of tax evasion, is counterproductive and against the interest of revenue. This is because a cancelled registration prevents the petitioner from conducting business, raising invoices, and thus impacts the recovery of tax. The Court, following the direction issued in the case of Subhankar Golder v. Assistant Commissioner of State Tax, Serampore Charge & Ors., proposed to set aside the order dated February 18, 2021, cancelling the petitioner's registration. This was made subject to the condition that the petitioner files all pending returns and pays the requisite tax, interest, fine, and penalty within four weeks of receiving the order. The Court directed the respondents to activate the portal within one week to facilitate the petitioner's compliance. The appellate order dated August 18, 2025, was also set aside. If the petitioner complies, registration will be restored; otherwise, the writ petition stands dismissed.
Key Issues
1. Whether the cancellation of GST registration on the ground of non-filing of returns, without allegations of tax evasion, is a pragmatic approach considering its impact on business operations and potential tax recovery (Question of law and fact, concerning the interpretation and application of the WBGST/CGST Act, 2017). Petitioner's contention: The cancellation of registration is counterproductive as it prevents the petitioner from carrying on business, raising invoices, and consequently impacts the recovery of tax by the revenue. The petitioner seeks restoration of registration. Revenue's contention: The judgment records no specific argument from the CGST authorities regarding the cancellation of registration. However, the order implies that the revenue's primary concern is compliance with return filing obligations.
Sections Cited
WBGST/CGST Act, 2017
AI-generated summary — verify with the full judgment below
10 22.04.2026 sb Ct 3
IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURI ICION APPELLATE SIDE Om Ultimate Techno India Private Limited Vs. Principal Chief Commissioner of CGST & Central Excise & Ors.
Ms. Bulbuli Basu
… For the petitioner.
Mr. Shiv Shankar Banerjee
Ms. Aishwarya Rajyasree
Mr. Chandra Gupta Kamal
…. For the CGST authorities.
The matter pertains to, in effect, challenge to an order of cancellation of registration under the provisions of WBGST/CGST Act, 2017 (hereinafter referred to as the said Act) dated 18th February, 2021. 2. Noting in absence of the petitioner’s registration, the petitioner is unable to carry on any business, this Court proposes to take up the hearing of this matter.
Heard the learned advocates appearing for the respective parties and considered the materials on record. Admittedly, I find that the petitioner’s registration under the said Act had been cancelled on the ground of non-filing of returns. It is not the case of the respondents that the petitioner had been adapting dubious process to evade tax.
Taking note of the fact that the suspension/revocation of license would be counterproductive and works against the interest of the revenue since, the petitioner in such a case would not able to carry on his business in the sense that no invoice can be raised by the petitioner and ultimately would impact recovery of tax, I am of the view that the respondents should take a pragmatic view in the matter and permit the petitioner to carry on his business.
Accordingly, having regard to the direction issued by the Hon’ble Division Bench of this Court in the case of Subhankar Golder v. Assistant Commissioner of State Tax, Serampore Charge & Ors. (MAT 639 of 2024) on 9th April, 2024, I propose to set aside the order dated 18th February, 2021, cancelling the registration of the petitioner under the said Act, subject to the condition that the petitioner files its returns for the entire period of default and pays requisite amount of tax, interest, fine and penalty, if not already paid.
It is made clear that if the petitioner complies with the directions/conditions noted above, within 4 weeks from the date of receipt of the server copy of this order, the petitioner’s registration under the said Act shall be restored by the Juri ictional Officer under the said Act. However, if the petitioner fails to comply with the directions as aforesaid, the benefit of this order will not enure to the petitioner and the writ petition would stand automatically dismissed.
For the purpose of compliance of the above directions, the respondents are directed to activate the portal within one week from the date of communication of this order, so that the petitioner can file its returns, pays requisite amount of tax, interest, fine and penalty if not already paid.
As a sequel thereto, the order dated 18th August, 2025 passed by the appellate authority also stands set aside.
Since, no affidavit-in-opposition has been called for, the allegations made in the writ petition are deemed not to have been admitted by the respondents.
With the above observations and directions, the writ petition stands disposed of.
Urgent photostat certified copy of this order, if applied for, be made available to the parties upon compliance with the requisite formalities.
(Raja Basu Chowdhury, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.