Incorrect Reflection of Suspension of GSTN Registration on Portal Might be “Technical Error”: Delhi HC directs Dept to Fix Issue and Process Refund [Read Order]

In an assessee-friendly ruling, the Delhi High Court has observed that the incorrect reflection that GSTN registration is suspended, might be a technical error on the GST portal and the department cannot withhold the GST refund in such cases.

The petitioner, Anuj Gupta, a proprietor applied for refund on three separate occasions. The ‘Deficiency Memo’ generated on the first occasion reflected the reason for rejection as: “the GSTN of the claimant is suspended and the columns are missing in GSTR 2A”. On the subsequent two occasions, the petitioner’s application for refund was rejected for the reason that “supporting documents attached are not complete”. The petitioner contended that the refund due to it has not been processed by the respondents as its GSTN registration has been incorrectly reflected as suspended.

The department, on the other hand, contended that the form GSTR 2A is not in the correct format. Concededly, the counter affidavit does not indicate any specific deficiency in the form as uploaded by the petitioner. Admittedly, form GSTR 2A is a system generated form. It is stated that certain columns in the form GSTR 2A are blank and therefore, the application for refund has not been processed.

Allowing the petitioner, Justice Vibhu Bakhru and Justice Amit Mahajan directed the GST department to examine whether the form GSTR 2A, as visible at the petitioner’s end, reflects all relevant details.

“If it does, it would be apparent that there is a technical error is in the respondents’ system,” the High Court said.

“If it is found that such a problem exists, the respondents are directed to address the said technical problem within a period of one week from today and, in any event, process the petitioner’s application for refund within a period of two weeks, on the basis of forms already filed. In the event the respondents cannot process the petitioner’s application for refund, the respondents shall indicate the same to the petitioner within the aforesaid period,” the Court added.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates