2023 (12) TMI 152 - HC - GST

Rejection of application for GST registration - More than one business entities were running from the same premises - demarcation of the properties - Principles of natural justice - HELD THAT - In the event, the property referred to by the petitioner, where, the Petitioner-Company is going to run its business either demarcated or not, the respondents are directed to issue GST registration number to the petitioner within one week from the date of receipt of a copy of this order. In case, if there is no demarcation of the property, the petitioner-Company is directed to demarcate the property within a period of one (1) week time from the date of issue of GST number - The petitioner shall demarcate the property and file the demarcation report on 27.11.2023. This Writ Petition stands disposed of - List the case before this Court on 27.11.2023 for Reporting Compliance of this order by both parties.

Summary

Issues involved:
The issues involved in the judgment are related to the rejection of GST registration application by the respondents without proper reasoning, the contention of the petitioner regarding demarcation of the property for business purposes, and the subsequent direction by the Court to issue GST registration number to the petitioner.

Rejection of GST Registration Application:
The petitioner had initially applied for GST registration, which was rejected by the 1st respondent without providing any reason. Subsequently, when the petitioner reapplied, the application was rejected again on the grounds that both the lessor and lessee were running businesses in the same premises, which was deemed unacceptable. The petitioner argued that they were conducting business on three acres of land and that the rejection was erroneous as no physical verification was conducted by the respondents.

Verification of Business Premises:
Following the Court's direction, officials from the respondent-Department visited the petitioner's business premises and observed two persons conducting business with separate GST numbers in the same location without clear demarcation of properties. The petitioner, however, claimed that there was proper demarcation of properties where they intended to operate their business and assured to provide records supporting the demarcation.

Court's Order:
In light of the conflicting submissions, the Court ordered the respondents to issue the GST registration number to the petitioner within a week if the property for business was demarcated. If not, the petitioner was directed to demarcate the property within one week from the date of receiving the GST number. The petitioner was further instructed to file a demarcation report by a specified date. The Writ Petition was disposed of with these directions, and no costs were awarded. The case was listed for compliance reporting by both parties on a future date.