A division bench of the Allahabad High Court, on Thursday, directed the Goods and Services Tax (GST) authorities to not to initiate penal actions against a Firm on ground of non-filing of GST returns for the mere reason that it had wrongly obtained registration as a Sole Propritor
Justices Pankaj Mithal and Umesh Chandra Tripathi has expressed this view in a petition filed by M/S Modern Pipe Industries.
In the above petition, the petitioner-Firm said that it has wrongly obtained registration in the status of sole proprietor instead of Partnership Firm. Therefore, it has not filed return till their registration gets amended.
In response to notice issued to the department, the Joint commissioner (IT) in the office of the Commissioner State Tax, Lucknow stated that he is expected to issue new GST ID/pass word to the petitioner as a partnership firm shortly whereupon necessary amendment in the registration certificate shall be made.
Directing the department to issue password within two weeks, the Court said that “no penal action would be initiated against the petitioner on non filing of the GST return and deposit of tax thereon provided the returns and the tax is deposited within two weeks of the issuance of the correct registration certificate.”
Read the full text of the Order below.
