Permanent registration must relate back to date of provisional registration and petitioner entitled to upload returns for the past period between the date of provisional and permanent registration and to avail eligible input tax credit based on returns uploaded by him.

Facts- The petitioner is a dealer in automobiles and was registered as such under the erstwhile Kerala Value Added Tax Act (hereinafter referred to as ‘the KVAT Act). With the introduction of the GST Act with effect from 1-7- 2017, he had applied for a registration under the said Act and by Ext. Pl certificate dated 28-6-2017, he was granted a provisional registration in terms of Section 139(1) of the said Act. It is the case of the petitioner that, thereafter, with a view to getting a permanent registration, he had attempted to upload the Form TRAN-1 for conversion of the provisional registration to a permanent registration as also for claiming input tax credit in respect of the tax paid on closing stock that was available with him at the time of the transition into the GST regime. He submits that despite a number of attempts made for the purpose, he was not able to login to the system and upload the TRAN-1 Form. While matters stood thus, in November, 2019, the petitioner attempted to generate e-way bills through the web portal of the respondents but, once again, could not do so since he had not received the permanent registration that he had applied for by then. It is significant to note that, while the permanent registration was not granted, the provisional registration initially granted had also not been cancelled by the respondents through the procedure contemplated under the Act. Under the said circumstances, the petitioner preferred Ext. P2 representation before the respondents, which again did not yield any response. In the meanwhile, by Ext. P3 certificate dated 4-1-2020, the petitioner was granted a fresh registration under the GST Act. Ext. P3 indicates that the date of liability of the petitioner is recognised by the respondents as 1-7-2017, the date of introduction of the GST Act. However, while describing the validity period of Ext. P3 registration certificate, the respondents indicated that it would be valid only from 4-1-2020. Noticing the said discrepancy in the registration certificate, the petitioner preferred a request before the respondents for change in the effective date of the registration certificate from 4-1-2020 to 1-7-2017. The said request of the petitioner was rejected by Ext. P4 communication dated 11- 1-2020. Impugning the said rejection, the petitioner is before this Court through the present writ petition.

Held- The Hon’ble High Court held that when the provisional registration granted to the petitioner was not cancelled through the procedure contemplated under the Act and Rules, and the respondents had granted a regular registration on 4-1-2020, the permanent registration must relate back to the date of the provisional registration and the petitioner ought to be entitled to upload the returns for the past period between the date of Exts. Pl and P3 and to avail eligible input tax credit based on the returns uploaded by him. This is more so because it is admittedly the case that there was no formal order cancelling the provisional registration, that was communicated to the petitioner in terms of the Act and Rules. Accordingly, I quash Ext. P4 communication, and direct the respondents to amend the Registration Certificate issued to the petitioner so as to make it valid from 1-7-2017, and permit the petitioner to upload the returns for the period covered by Exts. P5, P6 and P7 statements, and to pay tax as well as claim input tax credit based on the returns so uploaded. The respondents shall do the needful, by providing portal access to the petitioner within a month from the date of receipt of a copy of this judgment.

To read the complete judgment 2020 Taxo.online 829