GST Assessment Order Passed Against Unregistered Contractor Due to Identical Name Confusion on WAMIS & Income Tax Portal Data Quashed: Orissa HC [Read Order]

In a recent ruling, the Orissa High Court quashed a GST assessment order passed against an unregistered contractor after finding that the proceedings were initiated due to confusion arising from identical names and incorrect reliance on data from the Works and Accounts Management Information System (WAMIS) and Income Tax portals.

Srikant Das, the petitioner, was a works contractor who had ceased business operations in 2016 and did not obtain registration after the introduction of the Odisha Goods and Services Tax Act, 2017. Despite this, proceedings were initiated against him by generating a temporary GSTIN and issuing a notice in Form GST ASMT-14.

The petitioner was unaware of the initiation of these proceedings and ex parte assessment order was passed treating him as an unregistered taxable person and raising a demand. The appeal filed was dismissed by the Joint Commissioner of State Tax (Appeal) confirming the assessment.

The petitioner’s counsel argued that the authorities relied entirely on data available on the Works and Accounts Management Information System and the Income Tax Portal without verification. They argued that the data actually related to another contractor with the same name who was registered under the GST Act and that arbitrary assessment was passed against the petitioner.

The petitioner further argued that if an opportunity of hearing had been given, he would have clarified that he had stopped business long before the GST regime came into force.

The State’s counsel placed written instructions before the Court and explained that the turnover details relied upon by the department related to a different person who was registered under GST and had an identical name. They pointed out that the confusion arose due to similarity in names and incorrect attribution of portal data and it was conceded that the assessment order had been passed against an unregistered person on this mistaken basis.

A Division Bench comprising Chief Justice Harish Tandon and Justice Murahari SriRaman observed that the assessment and appellate authorities proceeded on an incorrect assumption regarding the identity of the taxable person. The court observed that once it was admitted that the data relied upon related to another registered contractor with the same name, the foundation of the assessment order could not survive.

The court held that the assessment order passed under Section 63 of the GST Act and the appellate order confirming it were legally unsustainable. The court quashed both orders and allowed the writ petition.

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