A petition has been filed before the Gauhati High Court on the ground of technical glitch in the Goods and Services Tax Network (GSTN) wherein the petitioner, M/s SRKM Steel Pvt. Ltd, was unable to replace Authorised Digital Signature of the Deceased Director with the Digital Signature of the New or Existing Director.
The petitioner is engaged in the business of Iron, Steel, builders & real estate developers and was a registered dealer under the Assam Value Added Tax Act, 2003. The petitioner company had two directors, Sri. Gaurav Khetawat and Smt. Sunita Devi Khetawat. The GST Portal required at least one person as an authorised signatory for doing online activities viz: filing of returns, forms, refund claim, making amendments to registration etc. and therefore Sri Gaurav Khetawat was registered as the authorised signatory on the GST Portal for the aforesaid online activities and other communication with the Department. Unfortunately, Sri. Gaurav Khetawat and the authorised signatory of the company passed away. On expiry of the said Director, the post of Director lay vacant and needed to be filled up. Therefore, the post of Director of the Company was filled up by the brother of Sri Gaurav Khetawat, namely Sri Saurav Khetawat.
After the appointment of the new Director, it became incumbent to make suitable amendment in the GST registration in respect of the change of Directorship of the Company. Upon his death, the petitioner firm made the endeavour to file a return through the signature of another Director of the company, but the online portal for the purpose of GST was not receiving such application forms. Whenever attempts were made to submit the online form through another signatory, the portal repeatedly kept asking for the digital signature of the earlier authorized signatory, who is no more. The GST Portal required the petitioner to use the digital signature of the deceased director. But such use will be treated as misuse of the digital signature in the eyes of law. The Petitioner approached all concerned authorities with this issue but they all expressed their inability to interfere with the GSTN Portal.
The Petitioner had also filed a grievance before the Support GSTN. However, the support GSTN directed the Petitioner to approach the Jurisdictional Tax Officer to set a New Authorized Signatory in the GST Portal. When contacted the Jurisdictional Tax officer, he also expressed his inability to interfere with the GSTN Portal. Aggrieved the petitioner decided to approach the High Court and has filed a writ petition through its Counsels, Senior Advocate Medha Lila Gope, and Advocate Nitu Hawelia.
Before the High Court Bench of Justice Achintya Malla Bujor Barua, the Counsel for the petitioner submitted that due to the non-operation of the GSTN Portal had lost its Input Tax Credit benefits under the transitional and other provisions. She further contended that the failure on the part of GSTN Portal to allow the petitioner to file the return without the change in Digital Signature and further non-accepting the change in the digital signature on account of expiry of a Director has prevented the Petitioner from filing returns and paying the said tax into the Government Treasury. The petition also points out that lack of confirmation of Input Tax Credit benefit to customers will gravely prejudice Petitioner’s customers and drive them away, thus putting Petitioner at the risk of a huge loss of business.
The petitioner prays to the High Court to issue a writ of mandamus or order or direction to the respondents to immediately allow the petitioner to change its digital signature and file returns and grant all statutory benefits, including benefits relating to Input Tax Credit, which were lost due to non-acceptance of returns by the GSTN Portal and to finalise the tax liability of Petitioner for the period up to the date of judgment in this Petition.
Mr D. Saikia, Senior Additional Advocate General appearing for the respondent, Taxation Department submitted that a system is in place by which a substituted Director can also be included for the purpose of authorized signatory in the event the earlier authorized signatory is dead. It is stated that the said system is as per Rule-19 of the Assam GST Rules, 2017. The Bench in its order directed Mr B. Choudhury, counsel assisting Mr D. Saikia to inform the learned counsel for the petitioner about the system in place. “The petitioner may avail the opportunity to do the needful.” said the Court.
The matter will be again taken up on 9th May.
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