Tirumala Balaji Marbles And Granites Vs Assistant Commissioner St and Others (Andhra Pradesh High Court)
In the case of Tirumala Balaji Marbles And Granites vs. Assistant Commissioner (ST) & Others, the Andhra Pradesh High Court ruled that GST registration cannot be denied solely on the basis that the applicant belongs to another state. The petitioner applied for GST registration under the AP Goods and Services Tax Act, 2017, for a business located in Rajamahendravaram. However, the application was rejected on November 4, 2024, by the tax authorities on the grounds that neither the petitioner nor the authorized representative was from Andhra Pradesh, citing potential tax evasion risks. The petitioner challenged this decision, arguing that the rejection was not supported by any legal provision.
The High Court held that the refusal of GST registration was unjustified, as there is no statutory restriction preventing a person from another state from registering a business in Andhra Pradesh. The court emphasized that Article 19 of the Indian Constitution guarantees the right to conduct business across the country, and mere apprehension of tax evasion is not a valid reason for rejection. Consequently, the court set aside the rejection order and directed the authorities to grant GST registration to the petitioner. However, the authorities retain the right to monitor the petitioner’s tax compliance and business activities to prevent potential tax evasion. This ruling reinforces the principle that tax administration must follow statutory provisions and not impose arbitrary restrictions on businesses.
