2017 (10) TMI 784 - HC - GST

Issuance of Password corresponding to the new provisional ID issued to the petitioner - case of petitioner is that Since the password has not been issued to the petitioner the petitioner is unable to complete the process of migration so as provided under Section 139 of GST Act read with Rule 24(1) of the CGST Rules 2017 - Held that - On inquiry made by the petitioner the petitioner has been informed on the GST Portal that the petitioner will not be allowed to deposit its tax and further to file the returns unless the late filing penalty and interest are also to be deposited. The contention of the petitioner is that there is no fault of the petitioner but on account of laches at the hands of the competent authority the petitioner company may suffer adverse financial consequences which may be arbitrary. The concerned respondent authority is directed to immediately issue a password to the petitioner company for completing migration process on the GST Portal for upload its returns and to deposit the due tax. It is further directed that the concerned respondent authority will allow the petitioner to complete migration to GST upon the receipt of such password as such issued to the petitioner company in accordance with law. Petition allowed - decided in favor of petitioner.

Summary

Issues:
1. Incorrect PAN number mentioned in provisional ID and Password for migration to GSTN.
2. Delay in issuing password corresponding to provisional ID.
3. Inability to complete migration process under GST Act and CGST Rules.
4. Adverse financial consequences due to inability to file returns and pay taxes.

Analysis:
1. The petitioner, a company engaged in health care services and supplying taxable goods, faced an issue where the Commercial Tax Department of U.P. allotted a provisional ID and Password for migration to GSTN with an incorrect PAN number. Despite the petitioner's efforts to update the correct PAN details, the correct provisional ID and Password were not provided, leading to hindrance in the migration process.

2. The petitioner highlighted the delay in receiving the password corresponding to the new provisional ID, affecting its ability to file returns, pay taxes, and access online services on the GST website. The petitioner's repeated requests for the password were acknowledged, but no concrete action was taken by the authorities, causing further delays and non-compliance with GST requirements.

3. The petitioner emphasized its inability to complete the migration process under the GST Act and CGST Rules due to the absence of the correct provisional ID and Password. This inability prevented the petitioner from filing returns, paying taxes, generating E-way bills, and accessing online services essential for its business operations, resulting in significant operational challenges and compliance issues.

4. Concerns were raised regarding the adverse financial consequences faced by the petitioner due to the delay and non-issuance of the password. The petitioner expressed that despite its proactive approach in seeking resolution, the authority's inaction could lead to penalties, interest payments, and potential financial losses, highlighting the urgency and importance of resolving the issue promptly.

Judgment:
The High Court directed the concerned respondent authority to immediately issue the password to the petitioner company for completing the migration process on the GST Portal, enabling it to upload returns and deposit due taxes. The court emphasized that the authority must allow the petitioner to complete the migration to GST upon receiving the password, ensuring compliance with the law. The writ petition was allowed, providing relief to the petitioner and addressing the issues raised regarding the delayed issuance of the password and its impact on the petitioner's business operations and financial obligations.