Meheraj Midde vs. Superintendent Of Central GST And Cx, Range-V, Chowringhee Div. And Anr.
Original PDF →Facts
The petitioner, Meheraj Midde, filed a writ petition before the Calcutta High Court challenging the order of cancellation of their GST registration. The cancellation was issued by the Superintendent of Central GST & CX, Range – V, Chowringhee Division, on the grounds of non-furnishing of returns. The petitioner expressed willingness to continue the business and comply with the provisions of the GST Act, including payment of outstanding tax, interest, penalty, and fine. The Court noted that the cancellation was solely for non-filing of returns and not due to any tax evasion practices. The Court also considered that revoking registration could be counterproductive for revenue recovery as the petitioner would be unable to issue invoices.
Held
The Court held that the cancellation of GST registration solely on the ground of non-furnishing of returns, without any indication of tax evasion, should be set aside. The Court reasoned that revoking registration can be counterproductive to revenue interests, as it prevents the taxpayer from carrying on business, issuing invoices, and consequently, impacting the recovery of taxes. The Court adopted a pragmatic approach, emphasizing that allowing the petitioner to continue their business, subject to compliance, would ultimately benefit the revenue. The Court proposed to set aside the cancellation order dated 10th April 2023, conditional upon the petitioner filing all pending returns and paying the applicable tax, interest, penalty, and fine within four weeks. If the petitioner complies, their registration will be restored by the Jurisdictional Officer. Failure to comply will result in the dismissal of the writ petition. The Court also directed the respondents to activate the petitioner's portal and login credentials within one week to facilitate compliance.
Key Issues
1. Whether the cancellation of GST registration on the sole ground of non-furnishing of returns, without any allegation of tax evasion, warrants interference by the High Court under its writ jurisdiction, considering the potential impact on revenue recovery? Petitioner's contention: The petitioner argued that they are willing to comply with all statutory obligations, including filing pending returns and paying all dues, and that continuing the business would be beneficial for revenue collection. They relied on the principle that a pragmatic approach should be taken to facilitate business operations and tax compliance. Revenue's contention: The respondents were not represented, but the Court acknowledged the potential impact on revenue recovery if the petitioner could not operate their business and issue invoices. The Court implicitly considered the provisions related to cancellation of registration for non-filing of returns.
Sections Cited
Section 39
AI-generated summary — verify with the full judgment below
199(ML) 08.08.2025 kaushik
Ct.
IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURI ICTION APPELLATE SIDE Meheraj Midde Versus Superintendent of Central GST & CX, Range – V, Chowringhee Division & Ors.
Mr. Akshat Agarwal Mr. Parikshit Karmakar
… For the petitioner
Mr. Tapan Bhanja
… For the respondents.
Affidavit of service filed in Court is taken on record.
Despite service since the respondents are not represented, I request Mr. Tapan Bhanja, learned advocate who usually appears on behalf of the respondents and is present in Court to appear on behalf of the respondents. Let his appointment be regularized.
The instant writ petition has been filed inter alia praying for revocation of the order of cancellation of the petitioner’s registration and for restoration thereof.
Mr. Agarwal, 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 10th April, 2023, 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.
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.