2025 (2) TMI 506 - HC - GST

Rejection of application for registration - ground given for such rejection was that the applicant does not belong to Andhra Pradesh and the authorized representative put forward by the petitioner does not belong to the State of Andhra Pradesh - HELD THAT - Though the apprehension of the respondents may not be misplaced it would not mean that registration can be refused on a ground which is not available under the Statute or the Rules. There do not appear to be any restriction for persons outside the State to come into the State of Andhra Pradesh and seek registration under the APGST Act. Mere apprehension however well founded cannot deprive the petitioner of his right to carry on trade and business in the State of Andhra Pradesh. It is also necessary to notice that Article 19 of the Constitution of India grants every citizen of this Country the right to set up and do business anywhere in the country. In such circumstances the order of rejection is clearly without any basis in law. The order of rejection dated 04.11.2024 is set aside. The respondents are directed to register the petitioner under the APGST Act - Petition allowed.

Summary

The petitioner sought registration under the A.P. Goods and Services Tax Act, 2005, which was rejected due to concerns of tax evasion. The court held that registration cannot be refused based on grounds not specified in the law. The rejection was deemed unlawful as it infringed on the petitioner's right to conduct business in Andhra Pradesh under Article 19 of the Indian Constitution. The court allowed the writ petition, setting aside the rejection and directing registration under the Act, with monitoring to prevent tax evasion. No costs were awarded, and pending applications were closed.