Asit Paul vs. State Of West Bengal And Ors.
Original PDF →Facts
The petitioner, Shri Asit Paul, filed a writ petition challenging an order dated November 12, 2024, passed by the Assistant Commissioner, Tamluk. This order cancelled the petitioner's GST registration under the WBGST Act, 2017/CGST Act, 2017, due to continuous non-filing of returns since April 2024. The petitioner expressed a desire to continue his business and willingness to comply with the Act by paying all outstanding taxes, late fees, interest, penalty, and fine. The petitioner also cited a previous judgment of the High Court in a similar case where registration was restored after cancellation for non-filing of returns.
Held
The Court held that the petitioner's registration was cancelled solely on the ground of non-furnishing of returns since April 2024. It was not the case of the respondents that the petitioner was involved in any fraudulent transaction, tax evasion, or any other similar mischief. Therefore, the Court was of the view that the petitioner should be given another opportunity to restore his registration. The Court directed that if the petitioner files returns for the entire period of default and pays all outstanding taxes, interest, late fees, fine, and penalty within six weeks from the date of the order, his registration shall be restored by the jurisdictional officer. The impugned order dated November 12, 2024, would be treated as set aside. The Court also directed the respondents to activate the petitioner's portal and login credentials within one week to facilitate compliance. The ratio decidendi is that a GST registration cancelled solely for non-filing of returns, in the absence of fraud or tax evasion, can be restored upon compliance with all statutory dues and filing of pending returns, provided the assessee expresses willingness to comply.
Key Issues
1. Whether the cancellation of GST registration for non-filing of returns, without any allegation of fraud or tax evasion, warrants restoration upon compliance with statutory obligations? (Section 62 of the CGST Act, 2017, and Section 22 of the WBGST Act, 2017 are implicitly relevant). Petitioner's contention: The petitioner argued that the registration was cancelled solely for non-filing of returns and that he is willing to pay all outstanding dues, including taxes, late fees, interest, penalty, and fine. He relied on the High Court's judgment in Sagorika Sarkar vs. Union of India & Ors. (WPA 15766 of 2025) where similar cancellations were set aside and registrations restored. Revenue's contention: The judgment records no specific argument from the State/respondents regarding their contention on this issue.
Sections Cited
Section 62, Section 22
AI-generated summary — verify with the full judgment below
N.22Sl 151/CL 09.02.26 Sl-27 Ct.551 (S.R.)
WPA 23278 of 2025 Shri Asit Paul v. The State of West Bengal & Ors. Mr. Debabrata Das Mr. Siddhartha Dasgupta … for the petitioner. Mr. Tanoy Chakraborty Mr. Saptak Sanyal … for the State.
Affidavit of service fled by the petitioner is taken on record.
This writ petition is directed against an order dated November 12, 2024 passed by the Assistant Commissioner, Tamluk whereby the petitioner's registration under the WBGST Act, 2017/CGST Act, 2017 (hereafter “the said Act of 2017”) has been cancelled for non filing of returns continuously since April 2024. 3. Mr. Das, learned advocate appearing for the petitioner submits that the petitioner is interested in continuing his business and that the petitioner is agreeable to comply with the provisions of the said Act of 2017 by paying all the outstanding taxes, late fees, interest, penalty and fine as may be applicable and imposable.
He also submits that this Court has in similar matters entertained writ petitions and directed restoration of registrations which have been cancelled on the ground of non furnishing of returns. In support of his contention he relies on a judgment of this Court in the case of Sagorika Sarkar vs. Union of India & Ors. [WPA 15766 of 2025 decided on 08.8.2025].
Heard the learned advocates appearing for the respective parties and considered the material on record.
It is evident from the order impugned dated November 12, 2024 that the petitioner's registration has been cancelled only on the ground of "Not furnishing returns since April, 2024”
It is not the case of the respondents that the petitioner is involved in any fraudulent transaction or has adopted any dubious process to evade tax or has committed any other mischief of like nature.
In such view of the matter, this Court is of the view that the petitioner should be afforded one more opportunity to get his registration restored upon furnishing returns for the entire period of default and upon payment of all outstanding taxes, interest, late fees, fine and penalty as applicable and imposable.
Accordingly, it is directed that if the petitioner files return for the entire period of default and pays all outstanding taxes together with interest, late fees, fine and penalty as leviable, imposable and 2
applicable within a period of six weeks from date, the petitioner's registration shall be restored by the juri ictional officer.
In such event, the order impugned dated November 12, 2024 shall be of no effect and shall be treated as having been set aside.
It is clarified that if the petitioner fails to comply with the directions contained hereinabove within the period as directed hereinabove, this order shall not enure to the benefit of the petitioner and the writ petition shall stand automatically dismissed.
For the purpose of compliance of the directions contained hereinabove, the respondents are directed to activate the petitioner's portal and log in credentials within one week from date so that the petitioner can file his returns and pay the requisite amount of tax, interest, late fees, fine and penalty in terms of this order.
With the aforesaid observations, WPA 23278 of 2025 stands disposed of. (Om Narayan Rai, J.) 3
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.