Inability to File Requisite Form For Business Premises Change Cannot be Basis for not Restoring GST Registration: Delhi High Court
Highlights that discrepancies in tax returns should not be a ground for such action
Inability to File Requisite Form For Business Premises Change Cannot be Basis for not Restoring GST Registration: Delhi High Court
Highlights that discrepancies in tax returns should not be a ground for such action
The Delhi High Court has restored the Goods and Services Tax (GST) registration of the petitioner by ruling that its inability to file the necessary form to record the change of business premises cannot be a valid reason for not restoring the registration.
The GST registration of Shiv Ganga Udyog (petitioner) was cancelled via a 22 July 2022 order, following a cryptic show-cause notice. On receiving the petitioner’s vague response, its GST registration was canceled by the assessing officer (AO).
Thereafter, the petitioner applied for revocation of the cancellation of its GST registration and informed the authorities about the shift in its principal place of business.
However, the application was rejected by the AO, as the petitioner did not submit the additional change of address details in the requisite form. As a result, the GSTIN related to the previous address could not be restored.
The Division Bench of Justice Vibhu Bakhru and Justice Amit Mahajan observed that the petitioner initially stated that he shifted after his registration was canceled, and was, therefore, unable to file the requisite form. However, this contention was not addressed. The Bench acknowledged that if a taxpayer's GST registration was canceled, they were indeed disabled from filing the necessary forms.
The Judges emphasized that discrepancies in tax returns and tax liability should not be a ground for the cancellation of the petitioner's GST registration. Instead, the authorities should follow the appropriate legal procedures to assess the correct tax liability if there were reasonable grounds to believe that the taxpayer has not disclosed it accurately.
Thus, allowing the petition, the Court set aside the impugned orders. It directed the authorities to immediately restore the GST registration of the petitioner.