Calcutta High Court Directs Restoration of GST Registration Subject to Clearance of Tax Arrears and Pending Returns

In the notable judicial pronouncement of Arup Sarkar Vs State of West Bengal & Ors., the Calcutta High Court addressed the administrative grievances of an assessee whose business operations were abruptly halted due to the revocation of their GST registration. The primary trigger for this stringent departmental action was the assessee's failure to furnish periodic tax returns as mandated under the WBGST/CGST Act, 2017.

The core issue revolved around whether the absolute cancellation of a registration serves the ultimate interest of revenue collection, especially when the assessee demonstrates a willingness to rectify past defaults and clear outstanding dues.