2019 (12) TMI 1049 - HC - GST

Permission to obtain digital signatures of Officers of the Official Liquidator to complete the procedures of acquiring GST No. of the company in liquidation - permission to Official Liquidator to purchase three mobile phones along with SIM Card in the name of the office of the Official Liquidator, High Court of Gujarat, to maintain transparency as well as maintain digital records in order - HELD THAT - Upon perusal of the report and considering the facts that it's a mandatory to furnish Digital Signature and Mobile Nos. of authorized person to obtain GST No. as per provisions of CGST Act, 2017 as well as both facilities are useful in other companies in liquidation and also filing other statutory returns of the companies in liquidation. There is need to obtain Digital Signature for authorized persons as well as to purchase three mobile phones along with SIM Card in the name of the office of the Official Liquidator, High Court of Gujarat for Official use only and to maintain transparency as well as maintain digital records in order. The report of the Official Liquidator is disposed of.

Summary

Issues:
1. Permission to obtain digital signatures for acquiring GST No. of the company in liquidation.
2. Permission to purchase mobile phones and SIM cards for maintaining transparency and digital records.

Analysis:

Issue 1: Permission for Digital Signatures and GST No.:
The Official Liquidator sought permission to obtain digital signatures to complete the procedures of acquiring GST No. for the company in liquidation. The Court noted that the assets of the company had been confirmed for sale, with the purchaser liable to pay GST on the assets. Upon receiving a demand for GST No. from the purchaser, the Official Liquidator engaged an empaneled Chartered Accountant to address the matter. The Chartered Accountant confirmed the requirement for a separate GST Registration No. for the company in liquidation. It was established that obtaining digital signatures and providing necessary details for GST registration were essential under the CGST Act, 2017. The Court accepted the Official Liquidator's request, emphasizing the importance of compliance with statutory provisions and the need for digital signatures for authorized personnel.

Issue 2: Purchase of Mobile Phones and SIM Cards:
Additionally, the Official Liquidator requested permission to purchase three mobile phones with SIM cards in the office's name to maintain transparency and digital records effectively. The advocate highlighted that the office's personnel might be transferred, necessitating separate mobile phones for official use. It was argued that maintaining separate mobile numbers and devices under the office's name would prevent manipulation of digital records related to the company in liquidation. The Court, considering the necessity of digital records maintenance and transparency, approved the request for purchasing mobile phones and SIM cards for official use. This decision aimed to ensure the integrity of records and facilitate statutory compliance for companies in liquidation.

In conclusion, the High Court of Gujarat, in a judgment delivered by Honourable Mr. Justice A. J. Desai, granted permission to the Official Liquidator to obtain digital signatures for GST registration and purchase mobile phones with SIM cards for official use. The judgment emphasized the importance of statutory compliance, digital record maintenance, and transparency in handling the affairs of companies in liquidation.