Akshaya Kumar Acharjya vs. State Of West Bengal And Ors.
Original PDF →Facts
The petitioner, Akshaya Kumar Acharjya, filed a writ petition challenging an order dated May 30, 2024, which cancelled his GST registration. The cancellation was based on the ground of non-furnishing of returns under Section 39 of the WBGST/CGST Act, 2017. The petitioner expressed his willingness to continue his business, comply with the Act's provisions, and pay any outstanding tax, interest, penalty, and fine. The Court noted that the petitioner was not engaged in tax evasion and that cancelling registration could be counterproductive to revenue collection as it would prevent the petitioner from raising invoices and impacting tax recovery.
Held
The Court held that the order of cancellation of GST registration dated May 30, 2024, should be set aside. The reasoning was that the cancellation was solely for non-filing of returns, and the petitioner was not involved in tax evasion. The Court considered that continuing the cancellation would be counterproductive to revenue interests, as it would prevent the petitioner from operating his business, raising invoices, and ultimately impacting tax recovery. Therefore, a pragmatic view was deemed necessary. The Court directed that the cancellation order would be set aside subject to the petitioner filing all pending returns for the entire period of default and paying the requisite amounts of tax, interest, penalty, and fine within four weeks of receiving the order. The Jurisdictional Officer was directed to restore the petitioner's registration upon compliance. The respondents were also directed to activate the petitioner's portal and login credentials within one week to facilitate compliance. If the petitioner fails to comply within the stipulated time, the writ petition would stand automatically 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 expresses willingness to comply and pay dues? Petitioner's contention: The petitioner argued that he wished to continue his business and was prepared to fulfill all statutory obligations, including filing pending returns and paying applicable taxes, interest, penalties, and fines. He submitted that his business was not involved in any dubious practices for tax evasion. Revenue's contention: The State, represented by the learned Additional Government Pleader and other advocates, did not explicitly argue against the petitioner's willingness to comply. The Court's observations suggest a pragmatic approach was considered, implying the State's potential acquiescence to a conditional restoration.
Sections Cited
Section 39
AI-generated summary — verify with the full judgment below
5 16.07.2025 sb
Ct.
IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURI ICTION APPELLATE SIDE Akshaya Kumar Acharjya Versus State of West Bengal & Ors.
Mr. Bankim Pal
Mr. Bikash Kumar Singh
… For the petitioner
Md. T. M. Siddiqui, Ld.AGP
Mr. Nilotpal Chatterjee
Mr. Tanoy Chakraborty
Mr. Saptak Sanyal
Mr. Debraj Sahu
… For the State.
Challenging the order of cancellation dated 30th 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.
Today, Mr. Pal, 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 30th May, 2024, subject to the condition that the petitioner filed his 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 files his returns, pays requisite amount of tax, interest, fine and penalty.
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.