2018 (11) TMI 706 - HC - GST

Registration under CGST Act - petitioner is registered under Section 12AA of Income Tax Act, 1961 - - Held that - The petitioner is registered under Section 12AA of Income Tax Act, 1961, and that, the Notification dated June 28, 2017 exempts the petitioner from applicability of the provisions of the Central Goods and Services Tax Act, 2017. It would be appropriate to stay the operation of the impugned writing dated October 20, 2017 till September 30, 2018 or until further orders, whichever is earlier - petition disposed off.

Summary

Issues:
- Challenge to a directive for registration under the Central Goods and Services Tax Act, 2017
- Interpretation of exemptions from registration under a Notification dated June 28, 2017
- Allegation of misapplication of statutory provisions against the petitioner
- Request for stay on the directive pending further orders

Analysis:
The petitioner contested a directive issued on October 20, 2017, mandating registration under the Central Goods and Services Tax Act, 2017. The petitioner, registered under Section 12AA of the Income Tax Act, 1961, argued that a Notification dated June 28, 2017, outlined exemptions from registration. The petitioner claimed the impugned directive was baseless, misinterpreted exemptions, and incorrectly applied statutory provisions. The petitioner feared being compelled to register and pay taxes unless the directive was stayed.

Upon initial review, the Court noted the petitioner's registration under Section 12AA of the Income Tax Act, 1961, and observed that the June 28, 2017 Notification exempted the petitioner from the Central Goods and Services Tax Act, 2017 provisions. Consequently, the Court deemed it appropriate to suspend the directive's enforcement until September 30, 2018, or until further orders, whichever came first. The Court directed the Revenue to file an affidavit-in-opposition within a week of the Court's reopening, with a three-week window for any subsequent replies.

The Court scheduled the Writ Petition for the Monthly List of July 2018 and instructed that an urgent certified website copy of the order be provided to the parties upon compliance with necessary formalities. This comprehensive analysis addresses the issues raised concerning the directive for registration under the Central Goods and Services Tax Act, 2017, the interpretation of exemptions, the alleged misapplication of statutory provisions, and the requested stay on the directive pending further orders.