M/S.Sabari Tmt King PVT. LTD. vs. The Joint Commissioner Of

Facts

The petitioner, M/s. Sabari TMT King Pvt. Ltd., formerly Saga Steels Pvt. Ltd., sought a writ of mandamus directing the respondents (GST authorities) to rectify an error in the PAN number in the registration certificate of Saga Steels Private Limited. The error was in the PAN number, which was recorded as AALCS7695MXM001 instead of the correct AALCS7695HXM001. The petitioner had taken over Saga Steels Pvt. Ltd. and had submitted a representation for rectification on July 10, 2015. As no action was taken, the writ petition was filed. The respondents' counter affidavit stated that the registration was based on an incorrect PAN provided by the applicant and that the error was not rectified immediately. The petitioner, however, limited their prayer to seeking only the correction of the registration certificate.

Held

The Court held that the petitioner has locus standi to maintain the writ petition because M/s. Sabari TMT King Private Limited has taken over Saga Steels Private Limited. Regarding the rectification of the error, the Court found that the registration certificate pertaining to Saga Steels Private Limited indeed contained an error in the PAN number. While acknowledging that the petitioner was responsible for the initial error, the Court held that this was not a ground to deny the relief sought. The Court referred to Clause 5.11 of the Procedure for Central Excise Registration and Grant of Certificate, which provides for the amendment of information. The Court was satisfied that the power to rectify the mistake was available and ought to be exercised when the error is pointed out. Therefore, the Court directed the second respondent, the Assistant Commissioner (GST) (AE), to rectify the error in the registration certificate of Saga Steels Private Limited and issue a revised certificate within six weeks from the date of receipt of the order. The writ petition was allowed to this extent.

Key Issues

1. Whether the petitioner has locus standi to seek rectification of the registration certificate of Saga Steels Private Limited, given that the petitioner has taken over the said company? 2. Whether the GST authorities are obligated to rectify an error in the PAN number in a GST registration certificate when such an error is brought to their notice, even if the error was initially caused by the applicant and not rectified immediately? Petitioner's arguments: The petitioner contended that as they have taken over Saga Steels Private Limited, they have the locus standi to seek rectification. They argued that the GST authorities have the power to rectify mistakes and should do so when an error is pointed out, irrespective of who caused the error or the delay in reporting it. They relied on Clause 5.11 of the Procedure for Central Excise Registration and Grant of Certificate, which outlines the procedure for amendment of information. Respondents' arguments: The respondents argued that the registration was issued based on an incorrect PAN provided by the applicant and that the error was not sought to be rectified immediately. They also claimed that stocks lying in the petitioner's factory would need to be verified. However, the judgment notes that the respondents do not contend that they cannot rectify the mistake.