Procedural non-compliance in GST registration, such as non-filing of returns, is curable, and substantive justice should prevail over technicalities to ensure business continuity and state revenue generation.

Form No. J(2)

Item No.4

Court No. 6

Sudipta

Aniruddha Roy, J. :

Facts:

1. Through this writ petition, the petitioner has challenged the impugned cancellation of GST registration dated March 13, 2025, annexure p-4 at page- 19 to the writ petition. The observation of the GST authority from the said impugned order is quoted below :

“Order for Cancellation of Registration

This has reference to show cause notice issued dated 12/08/2024.

Whereas no reply to the show cause notice has been submitted; and whereas, the undersigned based on record available with this office is of the opinion that your registration is liable to be cancelled for following reason(s):

1. Others

Remarks :

Returns has not been filed more than sis moths.

The effective date of cancellation of your registration is 12/03/2025.

2. Kindly refer to the supportive document(s) attached for case specific details.- Not applicable

3. It may be noted that a registered person furnishing return under sub-section (1) of section 39 of the CGST Act, 2017 is required to furnish a final return in FORM GSTR-10 within three months of the date of this order.

4. You are required to furnish all your pending returns.

5. It may be noted that the cancellation of registration shall not affect the liability to pay tax and other dues under this act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.

Place : CBIC

Date : 13/03/2025”

2. From the observations made in the impugned order, it appears that initially there was a show cause notice issued upon the petitioner and no reply was submitted by the petitioner in response to the said show cause notice. The observations further show that there were certain procedural irregularities on the part of the petitioner for which the GST registration was cancelled.

3. Learned counsel appearing for the petitioner submits that there has been an appellate provision under Section 107 of the Central Goods and Services Tax Act, 2017( for short, the said 2017 Act). The petitioner has preferred an appeal. By an order dated March 28, 2023, annexure p-6 at page-22 to the writ petition, the appeal was dismissed on the ground of limitation as the same was not filed within the period of limitation provided under the statute including within the grace period provided thereunder.

4. Mr. Paul, further submits that unless the said GST registration is restored, the petitioner will not be able to carry on his business and as a result shall suffer immense prejudice and shall be deprived of his livelihood. He further submits that the petitioner is agreeable to comply with all the procedural requirements which are necessary for restoration of the GST registration.

5. Mr. Paul further submits that in the event the GST registration is restored after making necessary statutory payments and if thereafter the petitioner is allowed to carry on the business, it would generate further revenue out of which the petitioner 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 exche