2023 (12) TMI 157 - HC - GST

Cancellation of GST registration of the petitioner - non compliance of specified provisions of GST Act and the Rules made therein - petitioner could not participate in the proceedings to defend itself in the Show Cause proceedings - allegation that, the petitioner is engaged in Bill Trading without actually supplying the goods - HELD THAT - The impugned order has been passed on 25.04.2023 is an appealable order in terms of Section 107 of the TNGST Act, 2017. Although attempt is made by the learned counsel for the petitioner to show that the petitioner has a huge place of business from where the petitioner is trading in goods, such disputed question of facts cannot be decided in this summary proceedings under Article 226 of the Constitution of India. This Writ Petition has to fail. However, liberty is given to the petitioner to file a statutory appeal before the Appellate Authority under Section 107 of the TNGST Act, 2017, within a period of 30 days from the date of receipt of a copy of this order - Petition dismissed.

Summary

Issues Involved:
The case involves challenging an Assessment order for the Assessment year 2021-2022 based on a Show Cause Notice for cancelling GST registration due to non-compliance with GST Act provisions, specifically related to Bill Trading activities.

Challenged Assessment Order and Show Cause Notice:
The petitioner, a private limited company, challenged the impugned Assessment order dated 25.04.2023, which confirmed the demand proposed in the Show Cause Notice issued on 19.07.2022 for cancelling the GST registration due to alleged non-compliance with GST Act provisions.

Petitioner's Defense and Allegations:
The petitioner argued that it was unaware of subsequent notices and proceedings due to defending against the initial Show Cause Notice. The petitioner claimed innocence, stating it was engaged in legitimate business activities and not Bill Trading as alleged by the respondent.

Respondent's Defense and Allegations:
The respondent defended the impugned order by highlighting various actions taken, including inspections, notices, and summonses served on the petitioner. The respondent accused the petitioner of engaging in Bill Trading and facilitating tax evasion through fraudulent practices.

Court's Analysis and Decision:
The Court considered arguments from both sides and found prima facie evidence of Bill Trading activities by the petitioner, leading to the cancellation of GST registration. The Court dismissed the Writ Petition, advising the petitioner to file a statutory appeal within 30 days while keeping coercive steps on hold upon pre-depositing the prescribed amount.

Conclusion:
The Court's decision upheld the impugned Assessment order, emphasizing the seriousness of the allegations related to Bill Trading and tax evasion. The petitioner was given the opportunity to appeal the decision within a specified timeframe, subject to meeting certain conditions.