Issue A GST Number Within 7 Days, Madras High Court Grants Relief To Assessee

The Madras HC recently passed an order and instructed the Goods and Service Tax (GST) Department to grant the assessee a GST registration number for starting its business.

The petitioner, M/s. Bio Med Ingredients Pvt. Ltd. earlier applied for GST registration but it was rejected by the 1st respondent (the department) which had no appropriate grounds to disapprove the application.

The petitioner firm again applied for Goods and Services Tax registration, and again it faced rejection because both the lessor and lessee had been running a business in the same location, which is not allowed legally.

The petitioner argued that they are operating their business on the mentioned land which is in the extent of three acres. The respondents did not even carry out any physical verification. The application for GST registration had been rejected and this writ petitioner has been filed by the petitioner company.

The counsel for the respondents argued that adhering to the above-mentioned instruction, the officials of the respondent department went for the inspection at the business premises.

They came to know that the place of business is occupied by two separate businesses with separate GST numbers and is being operated by two persons. The property is not demarcated, argued the counsel.

Read Also: Read Out More Important News of Madras High Court

Further, it was stated that at the same premise, the petitioner wants to get a Goods and Service Tax registration to run its business, some other company already exists which is run by another person. The properties had already been duly demarcated and records are available, argued the counsel of the petitioner.

The single-member bench of Justice Krishnan Ramasamy ordered in favour of the petitioner and directed the respondents to grant a GST registration number within one week from the date of receipt. The decision was taken irrespective of whether the property referred by the petitioner is demarcated or not.

From the date of issuance of the GST number, the petitioner-company is instructed to demarcate the property within one week time from the GST number issuance date, if in case, the property is not demarcated.

The property should be demarcated and the report should be submitted on 27.11.2023. Looking at the above-mentioned direction, the writ petition was disposed of by the court.