Unrealistic To Expect GST Return Filing Without Actual Commencement Of Business: Orissa High Court Directs Dept. To Process Licence Application

The high court of Orissa passed a judgment on 10.03.2023 and has held that the license application should not be rejected only because a GST return has not been filed yet, since it is unrealistic to expect that to happen without the actual commencement of its business, in the case of M/s. Galaxy Bar and Restaurant, Nayagarh Versus State of Odisha and others (W.P.(C) No.6916 of 2023), passed by division bench of Chief S. Muralidhar and Justice G. Satapathy. 


Facts of the Case:

On April 5, 2022, the petitioner applied for the restaurant’s ON Shop license. The petitioner gave clarifications and answered a variety of questions. An investigation on the raised objections came next. However, the Commissioner of Excise began a second high-level joint inquiry on July 13, 2022, and a third inquiry was held on November 5, 2022. The Excise Deputy Commissioner informed the Department that the building in which the restaurant was being run is in a commercial area after all inquiries went in the petitioner’s favor. The petitioner called the court’s attention to the petitioner’s application, which by itself demonstrated that a copy of the GST registration certificate was contained. Before receiving a license and being allowed to launch their firm, the petitioner would not have to worry about filing a GST return.


According to the court, it is illogical to expect a Tax return to be filed before the petitioner launches its firm, and an application shouldn’t be denied just because one hasn’t been submitted.

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