Order Date – 15 June 2023

Parties: Kousik Das Vs Assistant Commissioner of State Tax, Siliguri Charge & Ors.

Facts – 

• The Petitioner, Kousik Das, due to financial constraints was unable to discharge the tax liability and was unable to file return in GSTR-3B and statement of supply in GSTR-1.
• A show cause notice was issued on October 8, 2021 directing the petitioner to clarify as to why tax was not paid for the period from April’ 2020 to March’ 2021. In response to the notice, the petitioner had prayed for time to file due return along with new tax and also prayed for allowing the petitioner to pay the due tax in an instalment basis. 
• Without considering the same the respondent confirmed the demand along with interest and penalty. On July 22, 2022, the respondent no. 1 had cancelled the registration of the petitioner with effect from March 1, 2018. The appeal filed by the petitioner was also rejected on the ground that appeal of the petitioner on the ground that the appeal is barred by limitation and not filed through online process.

Issue – 

• Whether the cancellation of GST registration is in order?

Order – 

• The Single Bench of Hon’ble High observed that the judgment of Appellate Court in MAT No. 741 of 2022 (Santanu Mondal -vs- The Superintendent, Central Goods and Service Tax, Asansol Division, Range-IV & Ors.) is squarely applicable in the present case.
• In the present case also the Assessing Authority, the respondent no. 1 without considering the grievance of the petitioner had cancelled the certificate only on the ground that the petitioner has not submitted reply to the show cause and the Appellate Authority has dismissed the appeal of the petitioner on the ground that the appeal is barred by limitation and not filed through online process.
• Hence the orders are set aside and respondent is directed to consider the case of the petitioner afresh by giving an opportunity to the petitioner to file reply and also to afford an opportunity of personal hearing.