How to sue GST Officers who had rejected new GST registration appliaction of our clients

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WE ARE SERVICE AND SPACE PROVIDER, PROVIDING SPACE FOR VIRTUAL OFFICE WITH ONE HOUR TIME SLOT DAILY ON EACH SEAT.  ONE SEAT WILL BE DIVIDED BETWEEN NUMBER OF OCCUPIER ACCORDING TO OFFICE HOURS. STATE  GST DEPARMENT - GUJARAT  REJECT NEW GST REGISTRATION OF OUR CLIENT WITH REASON THAT WE CAN NOT ALLOTTE ONE SEAT TO MORE THAN ONE PERSON. HOWEVER THERE IS NO PROHIBITION IN GST LAW.

CAN WE SUE FOR THE BUSINESS LOSSES CAUSED TO US BECAUSE OF THEIR WRONG INTERPRETATION OF LAW, PROCESS THE  APPLIACTION WITHOUT APPLIACTION OF MIND, REJECTED APLIACTION WITHOUT SHOWING ANY VALID REASONS, CONTRAVEIN THE INSTRUCTION 03/2025 - GST ISSUED BY THE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS ? IF YES, UNDER WHICH ACT AND SECTION OF THAT ACT ?

Replies (3)

You can explore legal options for the GST registration rejection due to the state's incorrect interpretation of the law. Here are some potential avenues: Legal Basis for Challenge -

*GST Law*: Since there's no specific prohibition in GST law regarding allotting one seat to multiple persons in a virtual office setup, the rejection might be considered an incorrect application of the law. - 

*Instruction 03/2025*: The Central Board of Indirect Taxes and Customs (CBIC) instructions emphasize proper officer application of mind and providing valid reasons for rejection. If the rejection doesn't adhere to these guidelines, it could be challenged. Potential Legal Actions -

 *Writ Petition*: You might file a writ petition under Article 226 of the Constitution of India, challenging the rejection order and seeking direction for the GST department to reconsider the registration application. -

 *Section 160 of CGST Act*: You can also consider approaching the GST Appellate Authority or Courts under Section 160 of the Central Goods and Services Tax Act, 2017, for grievance redressal. Damages for Business Losses -

*Tort Law*: If the rejection causes business losses due to negligence or incorrect application of law, you might explore claiming damages under tort law, specifically under the principles of negligence or misfeasance. Key Considerations -

 *Documentation*: Maintain detailed records of the application, rejection, and communication with the GST department to support your case. -

*Legal Counsel*: Consult with a lawyer specializing in GST or administrative law to assess the best course of action and potential outcomes.

 By challenging the rejection and seeking legal recourse, you can potentially resolve the issue and claim compensation for business losses

SIR, 

THANKS FOR YOUR INITIATIVE IN OUR PROBLEM AND PROMPT REPLY. 

CAN WE SUE THE OFFICER UNDER CIVIL PROCEDURE CODE SECTION 79 AND 80 ?

PLEASE REPLY.

REGARDS, 

RASHMIKANT  G.  DAVE.

You can explore suing the officer under the Civil Procedure Code (CPC), specifically Sections 79 and 80, but there are certain conditions and considerations: Section 79: Suits Against Government -

*Government Liability*: Section 79 deals with suits against the Government. If the officer's actions were taken in their official capacity, the suit might need to be filed against the Government rather than the officer personally. Section 80: Notice of Suit Against Government - 

*Notice Requirement*: Section 80 requires a notice to be served to the Government or public officer before filing a suit. This notice period is typically two months. -

 *Purpose of Notice*: The notice allows the Government or public officer to consider the claim and potentially settle the matter before litigation. Key Considerations -

*Official Capacity*: Determine whether the officer's actions were taken in their official capacity or personal capacity, as this affects the suit's framing and notice requirements. - 

*Notice Period*: Ensure compliance with the notice period requirement under Section 80 to avoid suit dismissal on technical grounds. - 

*Consult a Lawyer*: Given the complexities of suing government officers, consult with a lawyer experienced in administrative law and civil litigation to assess the best approach and potential outcomes. 

By understanding the requirements and implications of Sections 79 and 80, you can make an informed decision about pursuing legal action against the officer.


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