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GST Registration can not be granted if the premises to be licensed is under dispute
JAMMU & KASHMIR HIGH COURT
Parveez Ahmad Baba …..Appellant
Union Territory of J&K and others …..Respondent
Sanjeev Kumar, J.
Date : 13/09/2022
Mr. M.A. Qayoom, Advocate with Mr. M. Tufail, Advocate for the Petitioner.
Mr. Jahangir Iqbal Ganie, Sr. Advocate with Mr. Muzaffar Nabi Lone, Adv. for the Respondent.
Case Disposed of
Issues Involved :- This writ petition is disposed of by holding that so long as the premises to be licensed under the Act remains under dispute, GST registration cannot be granted.
Section 25 of the CGST Act, 2017— Registration – The petitioner challenged the License dated 15th May, 2019 issued under the Food Safety and Standard Act, 2006 in favour of respondent No.5; Communication dated 2nd December, 2020 issued by respondent No.4, whereby the petitioner is intimated that the license is issued to the premises and not respondent No.5; Order dated 16th April, 2021 issued by respondent No.2, whereby GST registration issued in favour of the petitioner has been cancelled and a fresh registration has been issued in favour of respondent No.5. The petitioner and respondent No.5 jointly purchased a abuilding and further constructed restaurant. The petitioner alleged that respondent No.5 in connivance with the officials of Food Safety Department succeeded in getting the petitioner’s license transferred in his own name. It is further alleged that Respondent No.5, after logging in his e-mail ID changed his e-mail ID and password and applied on his behalf for cancellation of GST registration when the fact remains that the petitioner had not submitted any such application. The court observed that the petitioner and respondent No.5, who are joint owner of the premises, do not see eye-to-eye with each other. The petitioner and respondent No.5 are required to settle their dispute amicably or through the intervention of Court. Till dispute between the petitioner and respondent No.5 is settled and two, either jointly apply or property is partitioned and fall in the share of the person applying, no license can be issued by the designated authority under the Act. Therefore, neither the petitioner nor respondent No.5 is entitled to have a license under the Act or registration under the GST Act.
Held that:- The Hon’ble High Court held that so long as the premises to be licensed under the Act remains under dispute between the petitioner and respondent No.5, the designated authority under the Act is well within its power not to grant or renew the license under the Act in favour of one and to the exclusion of other. The parties need to settle their dispute either amicably or through intervention of the Court.