Nayan Bera vs. Superintendent CGST Anc Cx, Haldia CGST And Cx Comm. And Ors.
Original PDF →Facts
The petitioner, Nayan Bera, filed a writ petition challenging the order dated 24th May, 2024, which cancelled his GST registration. The cancellation was based on the ground of non-furnishing of returns under Section 39 of the GST Act. The petitioner expressed his willingness to continue his business, comply with the Act's provisions, and pay all outstanding tax, interest, penalty, and fine. The Court noted that the petitioner was not engaged in any dubious tax evasion practices. The cancellation of registration was deemed counterproductive as it would hinder the petitioner's ability to raise invoices and impact tax recovery. An appellate order dated 22nd July, 2025, which rejected the petitioner's appeal, was also challenged.
Held
The Court held that the cancellation of the petitioner's GST registration was counterproductive and against the interest of revenue. The Court reasoned that if the registration is cancelled, the petitioner cannot carry on business, raise invoices, and consequently, the recovery of tax would be impacted. Therefore, a pragmatic view was necessary. The Court decided to set aside the order of cancellation dated 24th May, 2024, and the subsequent appellate order dated 22nd July, 2025. This relief was made conditional upon the petitioner filing all pending returns and paying the applicable tax, interest, penalty, and fine within four weeks. The Court directed the respondents to activate the petitioner's portal and login credentials within one week to facilitate compliance. If the petitioner fails to comply, the writ petition would stand dismissed.
Key Issues
1. Whether the cancellation of GST registration for non-furnishing of returns, under Section 39 of the WBGST/CGST Act, 2017, should be set aside when the petitioner is willing to comply with all statutory obligations and continue business operations? Petitioner's contention: The petitioner argued that he is willing to comply with the provisions of the GST Act, pay outstanding dues, and continue his business. He submitted that cancellation of registration would be detrimental to revenue collection as it prevents him from carrying on business and raising invoices. Revenue's contention: The revenue authorities, represented by the Superintendent CGST & CX, Tamluk, passed the order of cancellation. Their arguments are not explicitly recorded in the judgment, but their action implies a stance that non-compliance with return filing mandates warrants cancellation.
Sections Cited
Section 39
AI-generated summary — verify with the full judgment below
15 22.09.2025 sb
Ct.
IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURI ICTION APPELLATE SIDE Nayan Bera Versus Superintendent CGST & CX, Tamluk Medinipur, Range I, Haldia Division, Haldia CGST & CX Commissionerate & Ors.
Mr. Sandip Choraria
Mr. Akash Chakraborty
… For the petitioner
Ms. Manasi Mukherjee
Mr. Bijitesh Mukherjee
… For the CGST authorities.
Affidavit of service filed in Court is taken on record.
Challenging the order of cancellation dated 24th May, 2024 passed under the provisions of WBGST/CGST Act, 2017 (hereinafter referred to as the “said Act”), the instant writ petition has been filed.
Learned advocate appearing in support of the writ petition would submit that the petitioner is interested to continue with the business and is agreeable to comply with the provisions of the said Act and to pay the outstanding tax, interest, penalty and fine as may be applicable.
Having heard the learned advocates appearing for the respective parties, it would transpire that pursuant to a show cause notice, the aforesaid order of cancellation of registration was issued on the ground of non-furnishing of returns under Section 39 of the said Act.
I find in this case that the registration of the petitioner had been cancelled on the ground of non-filing of returns. It is not the case of the petitioner that the petitioner had been adopting dubious process to evade tax. Taking note of the fact that the suspension/revocation of registration would be counterproductive and works against the interest of the revenue since, the petitioner in such case would not be 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.
Having regard to the aforesaid, I propose to set aside the order of cancellation dated 24th May, 2024, subject to the condition that the petitioner files the returns for the entire period of default and pays requisite amount of tax, interest, penalty and fine as may be applicable.
It is made clear that if the petitioner complies with the directions/conditions noted above within four weeks from 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. 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 petitioner’s portal and login credentials within one week from date so that the petitioner can file his returns, pays requisite amount of tax, interest, fine and penalty.
As a sequel thereto, the appellate order dated 22nd July, 2025 rejecting the appeal is also set aside.
With the above observations and directions, the writ petition is disposed of.
Parties shall act on the basis of the server copy of this order duly downloaded from the official website of this Hon’ble Court.
Urgent Photostat certified copy of this order, if applied for, be made available to the parties upon compliance of 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.