Ol Of Sterling Basic Organics LTD. (In Liqn) vs. Na
Held
The Court held that it is mandatory to furnish digital signatures and mobile numbers of authorized persons to obtain a GST number as per the provisions of the CGST Act, 2017. The Court found that both obtaining digital signatures and purchasing mobile phones with SIM cards in the name of the Official Liquidator's office would be useful not only for the current company in liquidation but also for other companies in liquidation and for filing other statutory returns. Therefore, the Court found a need to obtain digital signatures for authorized persons and to purchase three mobile phones along with SIM cards in the name of the Office of the Official Liquidator, High Court of Gujarat, for official use to maintain transparency and order in digital records. The report of the Official Liquidator was accepted in terms of the prayers made.
Facts
The Official Liquidator (OL) of Sterling Basic Organics Ltd. (in liqn) filed a report seeking permission to obtain digital signatures for its officers to acquire a GST number for the company and to purchase three mobile phones with SIM cards in the name of the OL's office. This arose after the sale of company assets for Rs. 8,37,00,000 to M/s. Recycling Solutions Pvt. Ltd., where the purchaser was liable for statutory dues, including GST. The purchaser requested the company's GST number to pay GST on the sale transaction. The OL's office, being a Central Government office, sought to maintain transparency and digital records by obtaining separate mobile numbers and digital signatures for official use, rather than using personal details of officers who may be transferred.
Key Issues
1. Whether the Official Liquidator should be permitted to obtain digital signatures of its officers for the purpose of acquiring a GST number for the company in liquidation and to incur expenses for the same from the company's account? (Question of law and fact, concerning the procedural requirements for GST registration). 2. Whether the Official Liquidator should be permitted to purchase three mobile phones along with SIM cards in the name of the OL's office for maintaining transparency and digital records, and to incur necessary expenses from the company's account? (Question of law and fact, concerning administrative and procedural necessities for the OL's functioning). Petitioner's Arguments: - The Official Liquidator argued that obtaining digital signatures and separate mobile phones for the OL's office is necessary to maintain transparency and order in digital records, especially given the potential for officer transfers. This is crucial for complying with GST requirements and facilitating transactions like the sale of company assets. They relied on the fact that the CGST Act, 2017, mandates digital signatures and mobile numbers for authorized persons to obtain a GST number.
Sections Cited
CGST Act, 2017, Schedule – II
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Cause title — parties, addresses and appearances
ORAL ORDER
By way of present report, the Official Liquidator has prayed as under : “[A] The Hon'ble Court may be pleased to permit the Official Liquidator to obtain digital signatures of Officers of the Official Liquidator to complete the procedures of acquiring GST No. of the company in liquidation and be pleased to permit the Official Liquidator to incur expenses of obtaining digital signatures from the account of the company in liquidation maintained by the office of the Offici
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