The Madras High Court directed the Goods and Service Tax (GST) department to grant a GST registration number as the assessee going to run its business. M/s.Bio Med Ingredients Pvt. Ltd., the petitioner-Company initially applied for GST registration and the same was rejected by the 1st respondent without assigning any reason.

Therefore, the petitioner Company once again applied for GST registration which also came to be rejected stating that both the lessor and lessee had been running a business on the same premises, which was not acceptable. It was submitted that the petitioner has been running its business on the same land which comprised to an extent of three acres.

The respondents without conducting any physical verification had erroneously rejected the application of the petitioner Company and hence, the present writ petition has been filed. The learned Government Advocate appearing for the respondents would submit that in compliance with the above-mentioned direction, the officials of the respondent Department visited the petitioner’s place of business and during such visit, they found that two persons had been carrying on their business in the same premises with two separate GST Numbers and there is no demarcation of the properties referred by the petitioner.

It was stated that though in the place, where, the petitioner is going to conduct the business, exists some other Company being run by some other person, however, the properties have been demarcated and regarding such demarcation, records are available. Since the property referred to by the petitioner, where, the Petitioner-Company is going to run its business either demarcated or not, the single bench member of Justice Krishnan Ramasamy directed the respondents to issue a GST registration number to the petitioner within one week from the date of receipt.

In case, if there is no demarcation of the property, the petitioner-Company is directed to demarcate the property within one (1) week time from the date of issue of the GST number. The petitioner shall demarcate the property and file the demarcation report on 27.11.2023. The court disposed of the  Writ Petition with aforesaid direction.