9911796707
TMI Blog2023 (11) TMI 876X X X X Extracts X X X X X X X X Extracts X X X X ..... The intention of the Legislature is that in certain circumstances, the authorities have the power to retrospectively cancel the registration of any person which has been obtained by fraud, willful misstatement or suppression of facts. Entries which have been obtained on the basis of fraudulent registration and to allow accumulation of tax credit in favour of third parties would defeat the object and purpose of the Act - the Legislature had contemplated retrospective cancellation of registrations which have been obtained to fraudulently avail ITC not only by the taxpayer whose registration is sought to be cancelled but also other entities which wrongfully seek to avail ITC. There has been no violation of the principles of natural justice in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration in favour of the petitioner was cancelled on 1 October, 2020 with retrospective effect from 21 October, 2019. 3. In an earlier round of litigation between the parties, being WPA 618 of 2021, a Learned Single Judge had by an order dated 24 February 2021 refused to entertain the writ petition on the ground that the petitioner had not availed of the statutory remedy. Being aggrieved by the order dated 24 February, 2021, the petitioner filed an appeal being MAT 13 of 2022 wherein the Hon ble Division Bench set aside the order dated 24 February, 2021 and quashed the order directing cancellation of registration and further directed the petitioner to file a reply to the show cause notice dated 21 September, 2020 and the respondent authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been taken into account. It is further alleged that there has been no detriment to the Revenue and there are no facts which suggest fraud or willful misstatement or suppression of facts. It is alleged that the respondent authorities in passing the impugned orders have proceeded in a preconceived manner. It is also alleged that the field visit reports conducted by the respondent authorities were conducted unilaterally and could not form the basis for cancellation of his registration. In any event, the revocation of the petitioner s certificate could not have been cancelled with retrospective effect. In support of their contentions, the petitioner relies on the decision in Aditya Polymers vs. Commissioner of Delhi Goods and Services Tax [202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or (b) there is any change in the constitution of the business; or (c) the taxable person, other than the person registered under sub-section (3) of section 25, is no longer liable to be registered under section 22 or section 24. 29 (2): The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where, (a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or (b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or (c) any registered person, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner as may be prescribed: Provided that in case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher. (6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed. 32. (1) A person who is not a registered person shall not collect in respect of any supply of goods or services or both any amount by way of tax under this Act. (2) No registered person shall collect tax except in accordance with the provisions of this Act or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. In such circumstances, the Legislature had contemplated retrospective cancellation of registrations which have been obtained to fraudulently avail ITC not only by the taxpayer whose registration is sought to be cancelled but also other entities which wrongfully seek to avail ITC. 10. There has been no violation of the principles of natural justice in the proceedings conducted by the authorities. On the contrary, the petitioner had been granted adequate opportunity by the respondent authorities. The impugned orders are well reasoned. A detailed physical enquiry had also been conducted by the authorities before passing of the impugned orders. The glaring discrepancies which were found by the authorities with regard to the business con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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