2021 (3) TMI 975 - HC - GST

Seeking to activate registration of the petitioners - seeking grant of final certificate of registration to the petitioners from 1.7.2017 - permission to file returns and pay tax under the GST Acts from 1.7.2017 - permission to allow the petitioners to claim input tax credit of IGST paid on imports made during the period when the registration certificate of the petitioners was blocked - seeking restraint from imposing any late fee or penalty under the GST Acts for non filing / late filing of returns by the petitioners under the GST Acts because of blockage of registration certificate of the petitioners - HELD THAT - The writ applicants represented before the authorities on number of occasions requesting for activation of the registration certificate under the GST Act and grant of final registration certificate since the very basis for inactivation / blocking of such certificate had been removed by the first appellate authority under the VAT Act - Because of inactivation of registration certificate the writ applicants were unable to file the returns and pay tax under the GST Act nor they were able to claim the Input Tax Credit of IGST paid on the imports made during the interregnum period. Since no response was received from the authorities despite number of representations the present writ application had to come before this Court. The respondents are directed to unblock / activate the registration of the writ applicants under the GST Act and grant the final registration certificate under the GST Act with effect from 1st July 2017 at the earliest. The respondents shall permit the writ applicants to upload the returns and pay tax under the GST Act from 1st July 2017 onwards without charging any late fee for the belated filing of the returns. The respondents are also directed to allow the writ applicants to claim the Input Tax Credit in respect of the imports / purchases made during the period in which the registration under the GST Act was blocked / inactivated and no dispute of time limit under Section 16(4) of the GST Act shall be raised as the Input Tax Credit was not allowed to be claimed on account of blocking / inactivation of the registration by the respondents - Application allowed.

Issues:
1. Activation of registration under GST Act
2. Granting final certificate of registration under GST Act
3. Permission to file returns and pay tax under GST Act
4. Claiming input tax credit of IGST
5. Restraining from imposing late fee or penalty under GST Act

Activation of Registration under GST Act:
The writ applicants sought a writ of mandamus to activate their registration under the GST Acts and grant the final certificate of registration from 1.7.2017. The applicants were initially registered under the Gujarat Value Added Tax Act and were granted a provisional registration certificate under the GST Act based on this registration. However, due to default in filing returns under the VAT Act, their registration certificate under VAT was cancelled, leading to the blocking of their provisional registration under the GST Act. The first appellate authority later allowed the appeal and restored the VAT Act registration. Despite representations to activate the GST registration, no response was received from the authorities, prompting the writ application.

Granting Final Certificate of Registration under GST Act:
The High Court directed the respondents to unblock and activate the registration of the writ applicants under the GST Act, granting the final registration certificate with effect from 1st July 2017. This decision was based on the removal of the basis for inactivation/blocking of the certificate by the first appellate authority under the VAT Act. The respondents were further instructed to allow the applicants to upload returns, pay taxes under the GST Act without late fees, and claim Input Tax Credit for the relevant period.

Permission to File Returns and Pay Tax under GST Act:
The applicants were unable to file returns, pay taxes, or claim Input Tax Credit under the GST Act due to the inactivation of their registration certificate. The High Court's judgment directed the respondents to permit the writ applicants to upload returns and pay taxes under the GST Act from 1st July 2017 onwards without imposing any late fees for the belated filing of returns. This relief was granted in light of the applicants' inability to do so because of the registration blockage.

Claiming Input Tax Credit of IGST:
The applicants were also seeking the permission to claim Input Tax Credit of IGST paid on imports made during the period when their registration certificate was blocked. The High Court's judgment explicitly directed the respondents to allow the applicants to claim the Input Tax Credit in respect of imports/purchases made during the period of registration blockage under the GST Act. It further clarified that no dispute of time limit under Section 16(4) of the GST Act shall be raised for the Input Tax Credit not allowed due to the registration blockage.

Restraining from Imposing Late Fee or Penalty under GST Act:
The applicants requested a writ to restrain the respondents from imposing any late fee or penalty under the GST Acts for non-filing or late filing of returns due to the blockage of their registration certificate. The High Court's judgment did not explicitly mention this relief but directed the respondents to allow the applicants to file returns without late fees, indirectly addressing this issue by enabling the applicants to comply with their tax obligations without facing penalties.

This detailed analysis of the judgment highlights the key issues addressed by the High Court in response to the writ application under Article 226 of the Constitution of India.

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