Case Details: Peul Enterprise vs. Union of India (2026) 40 Centax 304 (Cal.)
Judiciary and Counsel Details
- Om Narayan Rai, J.
- S/Shri Chittapriya Ghosh, Somesh Kumer Ghosh & Ms Tulika Bag, for the Petitioner.
- S/Shri Sujit Bhunia, Bhaskar Prasad Banerjee & Abhradip Maity, for the Respondent.
Facts of the Case
The petitioner was a registered dealer under the CGST Act and the West Bengal GST Act, whose registration was cancelled for non-filing of returns for a continuous period. An appeal was filed before the appellate authority, which was dismissed, and the cancellation order was affirmed. Aggrieved by such action, the petitioner filed a writ petition challenging both the cancellation and the appellate order, submitting that the default was limited to non-filing of returns and that there was no allegation of fraud, evasion, or suppression. It was further submitted that the petitioner was ready and willing to file all pending returns and discharge the entire tax liability along with applicable interest, late fee, and other dues. The matter was accordingly placed before the High Court.
CESTAT Held
The High Court held that the cancellation of registration was based solely on non-filing of returns and was not supported by any allegation of fraud, evasion, or other wrongful conduct. It was observed that denial of restoration in such circumstances would adversely affect both the petitioner and the revenue. The Court held that a further opportunity ought to be granted to enable compliance with statutory requirements. Accordingly, the cancellation order was set aside subject to the petitioner filing all pending returns and making payment of all dues within the prescribed time. Upon such compliance, the registration was directed to be restored.
List of Cases Cited
- Subhankar Golder v. Asstt. Commissioner of State Tax — (2024) 19 Centax 337 (Cal.) = 2024 (87) G.S.T.L. 88 (Cal.) — Followed [Para 6]
