Exercise of Power u/s 63 Was Erroneous If Petitioner Was Already Registered Under GST Since 1-7-2017 | HC

Case Details: Arupa Nanda Dhal v. Additional Commissioner of State Tax (Appeal) [2024] 159 taxmann.com 684 (Orissa)

Judiciary and Counsel Details

• • Dr B.R. Sarangi, ACJ. & Murahari Sri Raman, J.
  • Sunil Mishra for the Appellant.
  • Avinash Kedia for the Respondent.

Facts of the Case

The petitioner was duly registered under GST Act since 1-7-2017, in spite of same, it was assigned temporary registration by authority with effect from 1-7-2021, on ground that sufficient reason were there to believe that petitioner was required to be registered under GST Act. The another reason appended was that as per data available with WAMIS (Works and Accounts Management Information System) pertaining to period 2019-20, the petitioner received revenue and an assessment order under section 63 was issued by authority. The appeal against said order was also rejected. It filed writ petition against the exercise of power under Section 63.

High Court Held

The Honorable High Court noted that the petitioner got to know about the demand only when bank intimated attachment of account for purpose of recovery of demand raised in assessment framed under Section 63. The Court also observed that the Assessing Authority had earlier undertaken assessment under Section 74 and it was well aware of fact that petitioner had been granted registration under GST Act. Therefore, there was no scope for exercise of power under section 63 and thus it was held that exercise of power under section 63 was erroneous.