Kontak Courier, A Proprietorship Firm vs. The Union Of INDIA, Through The Secretary
Held
The Court noted that the only dispute was the difference amount of Rs. 3,85,788.44 for the tax periods June 2018 to March 2019 and July 2019. The petitioner agreed to pay this difference along with admissible interest/fine within two weeks. The Court disposed of the writ application with a direction to the respondents to defreeze the petitioner's bank account, but with a holding only on the disputed sum of Rs. 3,85,788.44. Upon payment of the difference amount and any applicable interest/fine within two weeks, the entire bank account was to be defreezed. The authorities were also directed to pass consequential orders after the payment. The Court did not expressly leave any issue undecided.
Facts
The petitioner, Kontak Courier, filed a writ application challenging the order dated July 12, 2019, passed by the Joint Commissioner (JC) cancelling its GST registration. The cancellation was due to the failure to file returns for over six months. The petitioner was registered under the GST in the Patna Circle. Subsequently, a demand of Rs. 13,83,671.28 was raised for tax periods June 2018 to March 2019 and July 2019. The petitioner claimed to have deposited Rs. 12,99,760/- and had its bank account frozen. The respondents, in a supplementary counter affidavit, stated the total demand was Rs. 15,43,389.34, with Rs. 11,57,600.90 paid through GSTR-3B, leaving a difference of Rs. 3,85,788.44.
Key Issues
1. Whether the cancellation of GST registration by the Joint Commissioner on account of failure to file returns for more than six months is valid, considering the petitioner's subsequent willingness to pay the outstanding dues? (Question of law and fact, turning on Section 29 of the CGST Act, 2017 and relevant rules). Petitioner's contention: The petitioner argued that despite the cancellation order, it had deposited a substantial portion of the tax amount and was willing to pay the remaining difference along with interest/fine. The freezing of the bank account caused significant hardship. Revenue/State's contention: The State submitted that a difference amount of Rs. 3,85,788.44 remained unpaid. They stated that if this difference, along with any applicable interest/fine, was paid, the bank account could be defreezed.
Sections Cited
Section 29
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.10966 of 2025 ====================================================== Kontak Courier, a Proprietorship firm, Having its head office at Jamal Road, Near Kumar Hotel, P.O. G.P.O., P.S. - Kotwali, Patna, Bihar, 800001, through its Sole Proprietor Shailendra Prasad, aged about 57 years, S/o Lal Bihari Prasad Resident of Prasad Nathupur Tola Kurthaul, Phulwari, P.S. Phulwari Patna, Bihar - 800453 ... ... Petitioner/s Versus
The Union of India, through the Secretary, Ministry of Finance Department of Revenue having its office at Room No. 46, North Block, P.O. and P.S. North Block, New Delhi - 110001. 2. The Chief Commissioner, CGST and CX, Office at - C.R. Building, Ist Floor, Bir Chand Patel Path, Patna, Bihar.
The State of Bihar through Commissioner BGST, New Secretariat, Patna.
Joint Commissioner of State Tax, Patna Circle Bihar, Bihar.
Assistant Commissioner of State Tax, Patna West, Bihar. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Shashwat Pratyush, Advocate For the State : Mr. Ravish Chandra, AC to SC-11 For the Resp
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