HC Directed Assessee to Demarcate Property Within One Week of Issue of GST Number If Not Demarcated

Case Details: Bio Med Ingredients (P.) Ltd. v. Assistant Commissioner (ST)/Commercial Tax Officer - [2023] 157 taxmann.com 501 (Madras)

Judiciary and Counsel Details

• • Krishnan Ramasamy, J.
  • Ms Aparna Nandakumar for the Petitioner.
  • Ms Amrita Dinakaran for the Respondent.

Facts of the Case

The assessee applied for GST registration but the GST department rejected its application stating that both lessor and lessee had been running business in same premises, which was not acceptable. The assessee challenged the rejection order before High Court and the Court directed department to visit assessee’s place of business and find out as to whether assessee was carrying on business separately in portion of land or not till next date of hearing.

The GST department after physical verification submitted that two persons had been carrying on their business in same premises with two separate GST numbers and there was no demarcation of properties referred by assessee.

High Court Held

The Honorable High Court noted that the property referred to by assessee, where, assessee-company was going to run its business had been demarcated and assessee was ready to submit records. Therefore, the Court directed SGT department to issue GST registration number to assessee. In case, if there was no demarcation of property, assessee-company was directed to demarcate property within a period of one (1) week time from date of issue of GST registration number.