GSTIN Linking Cannot Be Denied Merely For Providing Information In Wrong Form: Rajasthan High Court

The Rajasthan High Court has held that the Goods and Service Tax Identification Number (GSTIN) link cannot be denied merely for providing information in the wrong form.

The division bench, Justice Sandeep Mehta and Justice Kuldeep Mathur, has observed that absolute hyper-technical ground cannot be considered valid so as to deny the petitioner the opportunity to link the GSTIN of his father's firm with the new GSTIN number of the firm.

The erstwhile proprietor of the firm, Abdul Hameed Bhati, father of the proprietor Mohammad Afzal, expired on 31st January 2018, whereupon an intimation was forwarded to the respondent CGST Department through a letter in hard copy. The CGST Act provides a procedure for the cancellation and transfer of registration of the dealer pursuant to the death of the proprietor of the firm. However, the process is permissible if the information regarding the death of the proprietor is uploaded on a common portal in FORM GST REG-16. The information regarding the death of the sole proprietor was not forwarded to the CGST Department electronically and on the prescribed FORM GST REG-16, and thus, further attempts made on behalf of the firm to file the GST returns were blocked. In the meantime, a fresh registration has been acquired by the petitioner.

They challenged the non-acceptance of the prayer for cancellation and transfer of the GST registration and the inaction of the respondent in opening the portal to complete the tax liability as provided under Section 93 of the CGST Act.

The department submitted that the application for cancellation of registration was made on FORM GST REG-29 and not on FORM GST REG-16. Thus, the system did not link the GSTIN of Shri Abdul Hameed Bhati (the deceased proprietor of the firm) to the GSTIN of the petitioner.

The assessee contended that the hypertechnical stance taken by the respondents has created an unnecessary hurdle in the way of the petitioner in clearing the tax liabilities of the firm.

The court held that the petitioner gave the intimation about the death of the proprietor of the firm, which fact establishes his bona fides that he is desirous of removing the anomalies and clearing off the tax liability.

The court directed the department to activate the common portal and allow the petitioner to upload the appropriate information on FORM REG-16 within the next 30 days. The GSTIN numbers of the transferee and the transferor will be linked as soon as the information is provided, according to clause 3(b) of the Circular dated 28.03.2019.

Case Title: A.H. Marble Crafts, Through Proprietor Mohammad Afzal Vs Commissioner Tax

Case No: D.B. Civil Writ Petition No. 16147/2019

Date: 11/10/2022

Counsel For Petitioner: Lokesh Mathur

Counsel For Respondent: Kuldeep Vaishnav

Citation: 2022 LiveLaw (Raj) 249

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