Debasish Ghosh vs. The Superintendent Range V Khardah Division CGST And Cx Kolkata North Commissionerate And Ors

Facts

The petitioner, Debasish Ghosh, filed a writ petition challenging the cancellation of his GST registration. He contended that after cancellation, he had filed the pending returns along with the requisite tax and interest. The CGST Authority, represented by Mr. Maiti, submitted written instructions stating that an arrear revenue of Rs. 5,26,159/- was due from the petitioner. The petitioner disputed this amount, arguing that it did not account for payments already made post-cancellation. The dispute centers on the correct outstanding revenue amount and the restoration of the petitioner's registration.

Held

The Court directed the respondent authority to restore the petitioner's GST registration upon payment of the disputed amount of Rs. 5,26,159/-. The Court reasoned that this direction was issued considering the submissions of both parties and the written instructions from the CGST Authority. The respondent authority was ordered to open the GST portal to facilitate this payment. The petitioner was given 15 days from the portal opening to make the payment. The Court also clarified that this restoration is without prejudice to the petitioner's right to claim any adjustment by making a necessary application, which the respondent authority shall consider in accordance with law and subject to verification. If the petitioner fails to pay within the stipulated time, the authority is free to close the portal again. The issue of the precise amount due after considering the petitioner's payments was implicitly left for the respondent authority to verify and adjust subsequently.

Key Issues

1. Whether the CGST Authority has correctly calculated the outstanding revenue due from the petitioner for the restoration of his GST registration, considering payments made after cancellation? (Mixed question of law and fact, turning on principles of GST payment and reconciliation). Petitioner's arguments: The petitioner argued that the amount of Rs. 5,26,159/- claimed by the Revenue Authority is incorrect as it fails to consider the payments already made by him after the cancellation of his registration. He asserted that these payments should be factored into the final demand. Revenue/State's arguments: The CGST Authority, through written instructions, stated that an arrear revenue of Rs. 5,26,159/- is liable to be paid by the petitioner for the restoration of his registration. They did not explicitly address the petitioner's claim of prior payments in their submission to the court, but presented their calculated figure.