GST Update

 Desk of CA. Praveen Sharma – 1003 Series (CAPS) 

CALCUTTA HIGH COURT IN THE CASE OF Om Ultimate Techno India Private Limited

High Court Restores GST Registration to Enable Business Continuity

In a significant relief to taxpayers, the court dealt with a case involving cancellation of GST registration due to non-filing of returns. The petitioner challenged the cancellation order dated 18th February 2021 under the provisions of the GST law.

The court observed that without GST registration, a taxpayer cannot carry on business, as no invoices can be issued. This directly affects not only the business operations of the taxpayer but also impacts government revenue collection.

It was noted that the cancellation was purely on account of non-filing of returns, and there was no allegation of tax evasion or fraudulent activity against the petitioner. Considering this, the court took a pragmatic and practical view, stating that shutting down business activities would be counterproductive.

The court emphasized that restoration of registration would serve the interest of both the taxpayer and the revenue, as it would allow the taxpayer to resume operations and comply with tax obligations.

Accordingly, the court set aside the cancellation order, with a condition that the petitioner must file all pending returns and pay applicable tax, interest, fine, and penalty within a specified time.

Further, the authorities were directed to activate the GST portal to enable compliance. Upon fulfilling these conditions within the prescribed period, the GST registration shall be restored. However, failure to comply would result in automatic dismissal of relief granted by the court.

The court also set aside the appellate order and disposed of the matter, reinforcing the principle that procedural lapses like non-filing should not permanently disrupt genuine business activities when there is no intent to evade tax.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS