Al-Madina Reality LLP And Anr vs. Superintendent Range-Vi, CGST And Cx And Ors

Facts

The petitioners, Al-Madina Realty LLP & Anr., filed a writ petition challenging the cancellation of their GST registration. The cancellation was reportedly due to non-filing of returns. The petitioners submitted that they have since paid all outstanding revenue and are willing to pay any further amounts due to have their registration restored. The respondents are the Superintendent, Range-VI, CGST & CX, chowringhee Division, Park Street, Kolkata North Commissionerate, and others, including the Union of India.

Held

The Court disposed of the writ petition by directing the respondent CGST authority to restore the petitioner's registration. The portal for making payments was to be opened for a period of 15 days from the date of the order. The petitioner was directed to make the payment of any revenue due, as indicated by the respondent authority, by February 12, 2024. The Court reasoned that this approach would allow the petitioner to clear their dues and regularize their GST compliance. The Court further held that if the petitioner failed to make the payment by the stipulated date after the amount was indicated, the respondent authority would be free to block the portal again and proceed with the cancellation of registration. The principle established is that a reasonable opportunity for compliance can be granted even after cancellation, provided the taxpayer demonstrates willingness to clear dues.

Key Issues

1. Whether the GST registration of the petitioner should be restored, considering their willingness to pay all outstanding dues and the fact that they have already paid the revenue due, turning on the provisions related to cancellation and restoration of registration under the CGST Act, 2017. Petitioner's contention: The petitioner argued that they have paid all revenue due and are prepared to pay any further amounts required for the restoration of their registration. They sought an opportunity to rectify the non-filing of returns and clear any arrears. Revenue's contention: The judgment does not explicitly record any specific arguments made by the CGST & CX or the Union of India regarding their stance on the restoration of registration, other than their participation in the proceedings.