{"id":270321,"date":"2022-07-19T10:00:47","date_gmt":"2022-07-19T04:30:47","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=270321"},"modified":"2025-05-16T09:57:54","modified_gmt":"2025-05-16T04:27:54","slug":"madras-high-court-proper-reasons-to-be-given-for-rejecting-gst-registration-applications-just-writing-rejected-would-not-suffice","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/07\/19\/madras-high-court-proper-reasons-to-be-given-for-rejecting-gst-registration-applications-just-writing-rejected-would-not-suffice\/","title":{"rendered":"Madras High Court| Proper reasons to be given for rejecting GST Registration Applications; Just writing ‘rejected’ would not suffice"},"content":{"rendered":"
\n

   <\/p>\n

Madras High Court<\/span>: Anita Sumanth, J. set aside the impugned order which rejected a registration application filed under Section 22<\/a> read with Section 25<\/a> of Central Goods and Service Tax<\/a> (‘CGST Act') and Rule 8 of CGST Rules<\/a>, without assigning proper reasons and adhering to proper procedure.<\/p>\n

The petitioner filed an application seeking registration in accordance with Section 22<\/a> read with Section 25<\/a> of the CGST Act, 2017<\/a> and Rule 8 of the CGST Rules, 2017<\/a> in respect of a rice mandi which was duly acknowledged, and physical verification was also duly undertaken. A notice was issued by the respondent officer seeking clarification as the application did not enclose the details of the principal place of business of the petitioner. Pursuant to which, a copy of the rental \/ lease deed was uploaded however, registration was refused by way of a monosyllabic order simply mentioning ‘rejected’<\/span> without assigning any reasons or explanation for rejection. Aggrieved by this, the present petition was filed.<\/p>\n

Rule 9(4) of the Central Goods and Services Tax Rules, 2017<\/a> states:<\/p>\n

‘9. Verification of the application and approval<\/p>\n

………….(4) Where no reply is furnished by the applicant in response to the notice issued under sub-rule (2) or where the proper officer is not satisfied with the clarification, information or documents furnished, he [may], for reasons to be recorded in writing, reject such application and inform the applicant electronically in FORM GST REG-05.’<\/i><\/p>\n

The Court noted that the word ‘may’ only refers to the discretion to reject and not to blatantly violate the principles of natural justice. <\/span>If the assessing authority is inclined to reject the application, which he is entitled to, he must assign reasons for such objection and adhere to proper procedure, including due process.<\/p>\n

Thus, the Court allowed the petition and set aside the impugned order.<\/p>\n

[B C Mohankumar v. Superintendant of Central Goods and Service Tax, 2022 SCC OnLine Mad 3703<\/a>, decided on 16-06-2022<\/span>]<\/p>\n\n

Advocates who appeared in this case :<\/p>\n

Adithya Reddy, Advocate, for the Petitioner;<\/p>\n

Prakash for Mr. Rajendran Raghavan Senior Standing Counsel, Advocates, for the Respondent.<\/p>\n\n

*Arunima Bose, Editorial Assistant has reported this brief.<\/span><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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