Petitioner must provide written undertaking to pay assessed GST amounts for registration restoration after portal closure prevented transitional credit completion

The Gauhati HC disposed of a petition regarding transitional credit issues where the petitioner could not complete Tran-1 and Tran-2 transactions due to GST portal closure. The court directed that the petitioner and tax department sit together to determine exact tax dues, interest, and penalties. Following the precedent in Mayflower Hotels case, the petitioner must provide written undertaking to pay assessed amounts, after which registration will be restored. The petitioner retains right to challenge any over-assessment subsequently through appropriate application.

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Issues:
- Closure of GST portal affecting Tran-1 and Tran-2 transactions
- Applicability of Supreme Court's order in Special Leave to Appeal No. 32709-32710/2018
- Cancellation of GST registration due to non-filing of returns and non-payment of dues
- Requirement to pay assessed taxes, interest, and penalty to restore GST registration
- Need to operate portal for Tran-1 and Tran-2 transactions before portal closure

Closure of GST Portal:
The petitioner, a GST assessee, faced issues with Tran-1 and Tran-2 transactions due to the closure of the GST portal. The Supreme Court's order directed the GSTN to open the portal for two months, allowing assesses to file forms for availing Transitional Credit. The order emphasized the importance of ensuring no technical glitches during this period and granted officers 90 days to verify claims and reflect allowed Transitional credit in the Electronic Credit Ledger.

Applicability of Supreme Court's Order:
The High Court found that the relief sought by the petitioner was covered by the Supreme Court's directions in Special Leave to Appeal No. 32709-32710/2018. Consequently, the benefits provided by the Supreme Court's order were made applicable to the petitioner's case, as per the High Court's order dated 23.11.2022.

Cancellation of GST Registration:
Although the petitioner's GST registration was canceled by the authorities for non-filing of returns and non-payment of dues, the petitioner expressed willingness to comply with all requirements. Referring to a previous order, the High Court highlighted the process where the assessee and the department collaborate to determine and pay the assessed tax, interest, and penalty to restore the GST registration.

Requirement to Pay Assessed Taxes:
Acknowledging the petitioner's willingness to fulfill obligations, the High Court outlined a procedure where the petitioner, upon being informed of the total amount of taxes, interest, and penalty by the Superintendent of Goods and Services Tax, would provide a written undertaking to pay the specified amount. This undertaking would enable the petitioner to operate the portal for Tran-1 and Tran-2 transactions.

Need to Operate Portal Before Closure:
To address the urgency of the situation before the portal closure on 30.11.2022, the High Court directed the petitioner to cooperate with the Department, pay the assessed amount, and later file an application if over-assessment was suspected. The petitioner's representative was required to be present before the Superintendent of Goods and Services Tax on 29.11.2022 to ensure compliance with the court's directives. Failure to appear would render further action unnecessary, and the writ petition would stand disposed of accordingly.

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