State Gains Revenue Only If Businesses Operate; Cancelling GST Registration On Procedural Grounds Serve No Purpose: Calcutta High Court
Mehak Dhiman
4 Sept 2025 12:45 PM IST
The Calcutta High Court stated that the state gains revenue only if business operates; GST registration cancellation on procedural grounds serves no purpose. Justice Aniruddha Roy stated that the cancellation of GST registration of the assessee on the procedural ground would not enure any benefit either to the revenue authority or to the assessee. On the contrary, if the GST...
The Calcutta High Court stated that the state gains revenue only if business operates; GST registration cancellation on procedural grounds serves no purpose.
Justice Aniruddha Roy stated that the cancellation of GST registration of the assessee on the procedural ground would not enure any benefit either to the revenue authority or to the assessee. On the contrary, if the GST certificate stands restored and the assessee is allowed to carry on its business, the State can earn revenue to the till of the public exchequer.
A show cause notice was issued to the petitioner/assessee and no reply was submitted by the assessee in response to the said show cause notice. The GST registration of the assessee was cancelled. The assessee has challenged the cancellation of GST registration.
The assessee submitted that in the event the GST registration is restored after making necessary statutory payments and if thereafter the assessee is allowed to carry out the business, it would generate further revenue out of which the assessee will also be able to pay the revenue authority the necessary levies in due process of law and ultimately the revenue authority shall be benefitted and the State will earn the exchequers. By keeping this GST registration cancelled, the revenue will not earn any benefit.
The bench observed that the time to file statutory appeal including the grace period as provided under the statute stands expired. The impugned order cancelling of registration of the assessee shows that there were some procedural non-compliance on the part of the assessee leading to cancellation of the registration. These procedural non-compliance are curable.
The bench noted that due to the cancellation of the GST registration, the entire business of the assessee has been stopped. The impugned order shows that due to non-compliance of some procedural requirements, the registration was cancelled.
In view of the above, the bench allowed the petition and restored the GST registration of the assessee.
Case Title: Dinesh Biswas v. The State of West Bengal & Ors.
Case Number: WPA 1737 of 2025
Counsel for Petitioner/Assessee: Bikramaditya Ghosh, Rajiv Parik, Supriya Singh, Ved Rai, Mayank Bhandari and Vivek Saha
Counsel for Respondent/Department: Pretom Das and Rima Sarkar