Petitioner Wins GST Registration Challenge, Affirming Right to Business Under Section 25 Procedural Fairness

In a case involving registration denial under the UP GST Act, the HC found the Registering Authority's rejection unwarranted. The Court quashed the rejection order and directed the Assistant Commissioner to promptly reconsider the registration application, emphasizing the petitioner's fundamental right to conduct business and the importance of enabling lawful commercial activities within the regulatory framework.

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Issues involved: Registration denial to successful Resolution Applicant under the Uttar Pradesh Goods and Services Tax Act, 2017.

Summary:
The petitioner, a successful Resolution Applicant, had their Resolution Plan accepted by the National Company Law Tribunal. Despite this, the Registering Authority denied registration to the petitioner, hindering their ability to engage in lawful business activities. The earlier rejection of registration was set aside by the Court, emphasizing the importance of granting registration for lawful business operations. The Registering Authority's subsequent rejection was deemed to infringe on the petitioner's fundamental right to carry on business. As the issue solely pertained to registration enabling compliance with regulatory laws, and there were no objections from revenue authorities regarding the petitioner's business purpose, the Court allowed the petition, quashed the order of rejection, and directed the Assistant Commissioner to consider the petitioner's application for registration promptly.

The Court highlighted that registration is essential for conducting business activities within the legal framework and ordered the Registering Authority to review the petitioner's application for registration promptly, considering the disclosed activities. The Court emphasized the importance of enabling registered persons to engage in lawful activities involving tax incidence and stressed the significance of granting registration to facilitate business operations. The decision aimed to uphold the petitioner's right to carry on business without undue hindrance, ensuring compliance with regulatory requirements and enabling lawful transactions of goods and services.

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