2024 (4) TMI 765 - HC - GST

Petitioner granted GST registration backdated to July 2017 after portal mapping failure prevented input tax credit utilization

M/s. Camway Concepts Versus Union of India & Ors.

Gujarat HC disposed of petition seeking GSTIN activation and final registration certificate from 01.07.2017. Court held petitioner was not at fault for ... Seeking activation of GSTIN and granting final certificate of registration to the Petitioners from 01.07.2017 and appropriating the GST paid and returns filed by the Petitioners under the current GSTIN thereunder - permission to file returns, avail input tax credit and pay applicable tax under currently active GSTIN - HELD THAT:- It appears that there is no fault on part of the petitioner for not being able to utilise the provisional GST number which was given to the petitioner on transition after the petitioner has taken over the business of the proprietorship concern. The GSTN Portal is required to map the PAN number of the petitioner with the GST number instead of PAN number of the partnership firm, which was not done and therefore, the petitioner was unable to utilise the input tax credit during the interregnum period for the goods purchased from 01st July, 2017 till March, 2018. The contentions raised on behalf of the respondent is, therefore, required to be considered in light of the facts of the case that there was no option for the petitioner but to obtain new PAN number for the proprietorship which was inactive and there was no question of filing GST Returns with regard to the GSTN which was allotted to the petitioner after mapping of PAN number as the petitioner had already obtained fresh GSTN number. Therefore, the only remedy which would be available to the respondent Department was to get the GST number which was obtained by the petitioner in the year 2018 to make it effective from 01st July, 2017 so as to enable the petitioner to get the input tax credit for the goods purchased during the interregnum period from 01st July, 2017 to March, 2018. Petition disposed off. Issues Involved:1. Activation of GSTIN and granting final certificate of registration.2. Filing returns, availing input tax credit, and paying applicable tax for the specified period.3. Restraining the respondents from imposing late fees or penalties due to non-completion of the migration process.Judgment Summary:Issue 1: Activation of GSTIN and Granting Final Certificate of RegistrationBy way of this petition filed u/s Article 226 of the Constitution of India, the petitioner has prayed for reliefs including the activation of GSTIN 24AADHC3412R1ZC from 01.07.2017 and granting final certificate of registration. The petitioner, engaged in the supply of ZENON system/machinery, faced issues due to a technical error where the provisional GSTIN was linked with the PAN of a partnership firm instead of the petitioner's PAN. The provisional GSTIN was suo-moto cancelled due to a mismatch, and subsequent GSTINs were also cancelled or inactive. The petitioner obtained a new GSTIN on 05.04.2018 and filed returns under this number but could not file returns for the period from July 2017 to March 2018 due to portal restrictions.Issue 2: Filing Returns, Availing Input Tax Credit, and Paying Applicable TaxThe petitioner requested the reactivation of the second provisional GSTIN to file returns for the period from July 2017 to March 2018 and avail input tax credit. Despite multiple communications and visits to various authorities, the issue remained unresolved. The petitioner cited government notifications allowing the completion of the migration process and submitted the required documents but received no resolution. The respondents argued that the petitioner should have waited for the technical glitch to be resolved instead of obtaining a new GSTIN and that the petitioner is not entitled to carry forward or avail the benefit of input tax credit for the interregnum period.Issue 3: Restraining the Respondents from Imposing Late Fees or PenaltiesThe petitioner sought to restrain the respondents from imposing late fees or penalties for non-filing/late filing of returns due to the non-completion of the migration process. The court noted that the petitioner faced issues due to the GSTN Portal's failure to map the correct PAN, which was not the petitioner's fault. The court directed the respondent authorities to activate the GST Number 24AADHC3412R2ZB with effect from 01.07.2017 within two weeks, enabling the petitioner to get the input tax credit for the goods purchased during the interregnum period from 01.07.2017 to March 2018.Conclusion:In conclusion, the court directed the respondent authorities to activate the GST Number 24AADHC3412R2ZB with effect from 01.07.2017 within two weeks. The petition was disposed of with this direction, and the notice stood discharged.