Mansingh Somabhai Chaudhari Vs State of Gujarat & Ors. (Gujarat High Court)
The Gujarat High Court has overturned the cancellation of a Goods and Services Tax Identification Number (GSTIN), ruling that the cancellation was the result of a “technical glitch” and not a voluntary request by the taxpayer. In the case of Mansingh Somabhai Chaudhari vs. State of Gujarat & Ors., the court determined that the tax authorities had erroneously canceled the petitioner’s primary GSTIN, leading to a host of problems for the taxpayer, including an inability to file returns, pay taxes, and claim Input Tax Credit (ITC). The court directed the authorities to immediately reactivate the correct GSTIN.
The petitioner, who previously operated under the Value Added Tax (VAT) regime, applied for migration to the new GST system. The GST department initially issued a provisional GSTIN, but it was subsequently canceled due to the petitioner’s failure to complete Part B of the migration form. A confusing series of events followed, with the tax department issuing two new GSTINs to the petitioner. The petitioner applied for the cancellation of one of the new GSTINs. However, the department mistakenly canceled the petitioner’s provisional GSTIN, which was the number the petitioner had been using for his business and for which his suppliers were issuing invoices. This error left the petitioner unable to manage his tax obligations, including filing returns and claiming ITC.
