2020 (11) TMI 658 - HC - GST

Grant of retrospective registration with effect from 01.07.2017 for petitioner's Registration Certificate dated 07.06.2018 - TNGST Act - HELD THAT - Whether at all the petitioner is entitled for a relief sought for in his representation, dated 14.09.2020 is concerned, it is for the fifth respondent to consider the same on merits and in accordance with law. The petitioner relied upon two decisions of the Hon'ble High Court of Kerala in his representation, which according to him, enables the fifth respondent to validate the petitioner's registration from 01.07.2017 itself. The grounds raised by the petitioner in his representation, will have to be considered by the respondents on merits and in accordance with law and in the light of the decisions referred to by the petitioner. No prejudice will be caused to the respondents if the representation of the petitioner is considered by them, on merits and in accordance with law. This Court directs the fourth and fifth respondents to consider the petitioner's representation, dated 14.09.2020 seeking for validation of his registration from 01.07.2017 itself and pass final orders on merits and in accordance with law - Petition disposed off.

Summary

Issues:
Mandamus for retrospective registration under Tamil Nadu Goods and Service Tax Act.

Analysis:
1. The petitioner sought a Mandamus for retrospective registration with effect from 01.07.2017 under the Tamil Nadu Goods and Service Tax Act. The petitioner had faced difficulties in migrating from the Tamil Nadu Value Added Tax regime to the Goods and Service Tax regime due to inadvertent mistakes by the Accounts Department and technical glitches in the computer system. Despite submitting representations to the authorities, the petitioner's provisional Registration Certificate lapsed, leading to the issuance of a fresh Registration Certificate valid from 01.06.2018, while his tax liability commenced from 01.07.2017.

2. The petitioner, engaged in business activities in Kerala as well, highlighted that due to the errors and technical glitches, he was unable to avail input tax credit for the period up to 31.05.2018. The petitioner emphasized his eligibility to claim input tax credit under Section 16 of the Tamil Nadu Goods and Service Tax Act against the IGST element in invoices from Kerala. The inability to file returns due to the lack of a valid registration certificate further compounded the petitioner's challenges.

3. The petitioner submitted a representation on 14.09.2020, requesting validation of registration from 01.07.2017, citing judgments of the High Court of Kerala where similar reliefs were granted. However, the fifth respondent had not considered the petitioner's representation on its merits, leading to the filing of the writ petition. The petitioner's counsel argued that in similar cases, the Commercial Tax Department had validated registrations even when returns were submitted after the registration date.

4. The Special Government Pleader representing the fifth respondent contended that the petitioner had obtained a new registration, and the old registration was not in force when the returns were submitted. It was argued that retrospective effect could not be granted to the Registration Certificate. The Court directed the fourth and fifth respondents to consider the petitioner's representation, dated 14.09.2020, for validating his registration from 01.07.2017 within eight weeks, emphasizing the need for a thorough consideration of the petitioner's grounds and the referenced court decisions.

5. The judgment highlighted the importance of considering representations from taxpayers seeking relief and emphasized the need for authorities to evaluate such requests on their merits and in accordance with the law. The Court's decision to direct the respondents to review the petitioner's case within a specified timeframe aimed to address the petitioner's grievances and ensure a fair assessment of the situation based on legal principles and precedents cited in the representation.