2018 (10) TMI 1311 - HC - GST

Restoration of cancelled provisional registration - migration from VAT to GST - failure to upload necessary information - Held that - Although under the GST regime all applications required to be done online. in the event any dealer faces any problem in uploading such data, the Commissioner ought to place alternative authority with the Sales Tax Officer or appropriate officer before whom manual returns can be filed and or the dealers be assisted in uploading the necessary information at their respective offices. The Officer cannot throw their hands in desperation and blame the computer or the failure of uploading and consequently lead to cancellation of registration. The CT & GST Circle, Cuttack- I, West is directed to attend the problems faced by the petitioner forthwith in terms of the direction issued by the Commissioner positively within a week from the date of receipt of a certified copy of this order - writ application is disposed of.

Summary

Issues:
Challenge to cancellation of provisional registration under GST Act, restoration of registration certificate, migration from VAT to GST, manual compliance issues leading to registration cancellations, directive for restoration of cancelled provisional registrations, responsibility of authorities in assisting dealers with uploading necessary information.

Analysis:
The petitioner filed a writ application challenging the cancellation of provisional registration under the GST Act. The petitioner also sought restoration of the registration certificate, which was rejected by the CT & GST Circle. Multiple writ applications regarding migration from VAT to GST and the continuation of registration for dealers have been filed before the Court. The petitioner claimed that despite efforts to upload required information on the GST Portal, manual compliance was necessary due to technical issues. The authorities expressed helplessness in accepting manual compliance, resulting in the cancellation of registrations in various cases.

The Commissioner of Commercial Taxes and GST, Odisha issued a directive to the GST Circle Heads for the restoration of cancelled GST provisional registrations. The directive emphasized the importance of resolving such cases promptly to enable taxpayers to conduct their business activities effectively. The Court acknowledged the efforts of the Commissioner in addressing the issue but highlighted the need for authorities to assist dealers facing challenges in online applications. The Court emphasized that the inability to upload data should not lead to registration cancellations, as it adversely affects both the State revenue collection and the dealers' business operations.

The Court directed the CT & GST Circle, Cuttack-I, West to promptly address the petitioner's issues in compliance with the Commissioner's directive within a week of receiving the order copy. The judgment stressed the importance of resolving registration-related problems promptly to ensure the smooth functioning of businesses and revenue collection for the State. The Court concluded the writ application with these observations and directions, emphasizing the significance of assisting dealers in navigating the online application process to prevent unwarranted cancellations of registrations.