HC Directs to Modify the Cancelled Registration of Assessee to the Extent That It Could Make Supply to Realize Receipts

Case Details: OSM Projects Private Limited vs. Union Of India - [2024] 161 taxmann.com 29 (Delhi)[22-03-2024]

Judiciary and Counsel Details

• Sanjeev Sachdeva & Ravinder Dudeja, JJ.
• Ganesh Chand Sharma, Adv. for the Petitioner.
• Atul Krishna, Harpreet Singh, Ms Suhani Mathur & Jatin Kumar Gaur, Advs. for the Respondent.

Facts of the Case

The petitioner’s registration was cancelled without receiving any formal order of cancellation, and despite this, the GST portal continued to show the registration as suspended. Additionally, the petitioner argued that there were certain admitted tax dues of the tax authorities; however, due to the incarceration of the main Operational Director, the commitments could not be fulfilled. It was further submitted that the petitioner had outstanding receivables from Bharat Heavy Electricals Limited (‘BHEL’) and that there were additional supplies ready for dispatch to BHEL for their pending orders, for which payments would be received upon delivery.

High Court Held

The Court held that the petitioner’s registration should be modified to the extent that it can make supply of goods to BHEL against pending orders. Furthermore, the Court directed BHEL to deposit the entire amount payable to the petitioner with the GST authorities.