2021 (10) TMI 372 - HC - GST

Seeking for reverting/changing back the nature of levy to be imposed on the petitioner from regular to composition levy w.e.f. 01st January, 2020 - HELD THAT - Admittedly, petitioner s representation seeking reversion from regular to composition levy is pending consideration before the respondent No. 2. Moreover, as the show cause notice dated 08th February, 2021 has been rescinded, this Court directs the respondent No. 2 to consider petitioner s representation for reversion from regular to composition levy within two weeks and if it finds that the petitioner fulfils the eligibility criteria, then it should recommend petitioner s case to the GSTN forthwith. The present writ petition along with pending application stands disposed of.

Summary

Issues:
1. Quashing of show cause notice dated 08th February, 2021.
2. Reverting/changing nature of levy from regular to composition levy.
3. Registration as an interstate supplier due to inadvertent error.
4. Pending consideration of representation for reversion from regular to composition levy.
5. Direction to respondent No. 2 for timely consideration and recommendation to GSTN.
6. Disposal of the writ petition and setting compliance date.

Analysis:
1. The petitioner filed a writ petition seeking the quashing of the show cause notice dated 08th February, 2021 issued by Delhi GST/respondent No. 2. The respondent No. 2 rescinded the show cause notice on 23rd February, 2021, rendering the issue moot.

2. The petitioner requested a change in the nature of levy from regular to composition levy, emphasizing the lack of engagement in interstate outward supply of goods. The court directed respondent No. 2 to consider the petitioner's representation for reversion within two weeks, subject to fulfillment of eligibility criteria, and recommend the case to GSTN promptly upon approval.

3. The petitioner's registration as an interstate supplier was acknowledged as an inadvertent error by the learned counsel, highlighting the need for corrective action to align with the actual business activities.

4. The representation for reversion from regular to composition levy was confirmed to be pending consideration before respondent No. 2. The court intervened to ensure timely review and decision-making, emphasizing adherence to due process and eligibility criteria.

5. In response to the arguments presented, the court directed respondent No. 2 to expedite the evaluation process and, if found eligible, recommend the petitioner's case for reversion to GSTN within the specified time frame, ensuring efficient resolution of the matter.

6. The writ petition, along with any pending applications, was disposed of based on the directions provided. A compliance date of 6th December, 2021, was set for monitoring the implementation of the court's orders, with instructions for immediate website upload and email dissemination of the order to the concerned parties.