2022 (10) TMI 915 - HC - GST

Inactions in not initiating actions in demanding/recovering GST collected from the television subscribers/customers since the year 2017 till date - non-issuance of appropriate notices calling upon them to register under the provisions of GST Act to carry out business activities legally - violation of principles of natural justice - HELD THAT - The Assistant Commissioner (ST) No.II, Khammam, being the proper officer under the Central Goods and Services Tax Act, 2017 as well as under the Telangana Goods and Services Tax Act, 2017 are directed to take an appropriate decision in the matter within a period of three months from the date of receipt of a copy of this order. Petition disposed off.

Summary

Issues:
1. Failure to initiate actions against respondents for GST collection.
2. Failure to issue appropriate notices for GST registration.
3. Legality of respondents' actions and passing appropriate orders.

Analysis:
1. The petitioner filed a writ petition seeking actions against certain respondents for not initiating actions against others for demanding/recovering GST collected from television subscribers/customers since 2017. The respondents were alleged to have not taken action against businesses exceeding the turnover threshold for GST registration. The State Tax Officer, respondent No.5, clarified the legal provisions under the GST Act, stating the obligations for registration and tax liability. The Officer mentioned that notices were issued to unregistered businesses and objections were filed, claiming turnover below the threshold. The Officer assured that the objections were under consideration for appropriate action under the Act.

2. The petitioner also sought declarations regarding the failure of respondents to issue appropriate notices to certain businesses for GST registration. Respondent No.5's affidavit detailed the actions taken, including issuing notices to identified unregistered businesses and seeking details for assessments. The Officer highlighted the legal provision allowing assessment of tax liability for non-registered taxable persons. The Court directed the Assistant Commissioner to make a decision within three months on the matter, emphasizing compliance with GST registration and tax obligations.

3. The Court acknowledged the stand taken by respondent No.5 and directed the Assistant Commissioner to make an appropriate decision within a specified timeframe. The writ petition was disposed of accordingly, with pending applications to stand closed. No costs were awarded. The judgment focused on ensuring compliance with GST registration and tax payment obligations, emphasizing the legal provisions and actions required under the GST Act. The Court's decision aimed at addressing the petitioner's concerns regarding the inactions of certain respondents and ensuring proper enforcement of GST regulations.