Ashok Kumar Meher Vs Commissioner of Sales Tax & GST (Orissa High Court)
Background and Issue: The petitioner, Ashok Kumar Meher, filed a petition before the Orissa High Court seeking implementation of a revisional authority’s order dated 17th September 2018, which directed restoration of his original registration certificate (RC) under the GST regime. The petitioner also challenged a demand dated 4th March 2021 denying him Input Tax Credit (ITC) and sought permission to avail ITC on goods held in stock on the appointed day.
The petitioner had originally obtained a registration under the Orissa Value Added Tax (OVAT) Act, which was cancelled by the department due to alleged non-filing of returns. To continue business, he applied for and obtained a new registration certificate (RC) in 2017. Subsequently, his revision petition was allowed, restoring the old registration. However, the Department did not implement this order, citing the issuance of a new RC and “technical difficulties” on the GST portal (VATIS/ GSTN).
Department’s Stand: The Department contended that since the petitioner voluntarily applied for a new registration, restoration of the old RC could not be supported by the system. They also argued that the stage for filing TRAN-1 forms to claim ITC had passed, and the claimed ITC did not pertain to the GST period. The Department relied on the petitioner’s undertaking at the time of the new registration to comply with law and not repeat prior errors.
Petitioner’s Argument: The petitioner emphasized that the order of the revisional authority in 2018 restored his old registration, and non-implementation of this order violated his rights. He relied on the Delhi High Court judgment in SKH Sheet Metals Components v. Union of India (2020) 79 GSTR 7 (Del), highlighting that technical difficulties should not prevent taxpayers from availing benefits, including ITC, and administrative convenience cannot override statutory rights.
Court’s Findings:
The Orissa High Court found merit in the petitioner’s arguments:
