2023 (9) TMI 698 - HC - GST

Rejection of application filed by the petitioner for fresh registration under the respective GST enactments to carry on business - HELD THAT - The Court is inclined to dispose this writ petition by directing the respondent to permit the petitioner to carry on the business either by allowing the petitioner to avail the benefit of Notification No.3/2023-Central Tax dated 31.03.2023 as extended by Notification No.23/2023-Central Tax dated 17.07.2023 or in the alternative, accept the application filed for fresh registration. Considering the fact that the petitioner has discharged major part of the tax liability by debiting his Electronic Credit Ledger for the supplies effected by the petitioner during the period in dispute, the petitioner shall deposit a sum of Rs. 1,50,000/- in cash within a period of thirty days from the date of receipt of a copy of this order without prejudice to the rights of the petitioner in the proceedings that is to be completed pursuant to the notice dated 25.07.2023 in Form GST ASMT-14 issued under Section 63 of the TNGST Act, 2017. Petition disposed off.

Summary

Issues involved:
The petitioner challenged the rejection of a fresh registration application under the Tamil Nadu Goods and Service Tax (TNGST) Rules, 2017. The petitioner's registration was cancelled due to failure to file returns in time. The petitioner failed to file an appeal or application for revocation within the stipulated timeline. A fresh application for registration was rejected, and a Show Cause Notice was issued for tax on undeclared closing stock. The petitioner did not participate in the proceedings, leading to a dispute over tax liability payment.

Judgment Details:
The High Court considered the petitioner's disability and the failure to file returns in time, resulting in registration cancellation. The petitioner's failure to appeal or apply for revocation within the specified timeline was noted. Despite filing returns and a fresh registration application, the rejection was based on tax liability issues. The Show Cause Notice highlighted tax liability on undeclared closing stock. The petitioner's non-participation in the proceedings was a point of contention.

The Court acknowledged the petitioner's tax liability payment method and the Department's concern over revenue leakage. Emphasizing the petitioner's need to engage in business for livelihood, the Court deemed the denial of registration unjustified. Citing a previous case for reference, the Court directed the respondent to allow the petitioner to conduct business by availing specified benefits or accepting the fresh registration application.

Instructing the petitioner to deposit a specific sum within a set timeframe, the Court outlined compliance conditions for registration revival or issuance. The judgment concluded by disposing of the Writ Petition without costs, with a focus on completing pending proceedings promptly.