9911796707
TMI Blog2024 (2) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... tely improper for the respondent authority to direct payment of penalty by the petitioner. It appears that though there was an allegation of non existence of the supplier Company leading to non-deposit of the input tax credit but later on 30.12.2023, that is prior to issuing of the show cause notice on 31.12.2023 the supplier Company already deposited the input tax - Assuming there was an intention to evade tax on the part of the supplier, but later on by way of payment of tax, the allegation of intention to evade tax falls flat. The supplier Company appears to have been registered by the registered authority in Assam. Had there been any deficiency on the part of the supplier Company in production of relevant documents, registration o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner was registered recently under the GST Act with effect from 09.10.2023 in the State of Assam. M/S. Navaraj Trading Company has shown the nature of occupancy over the place of business as rented and in support of its claim rent agreement and the trade license was supplied. No documents like electricity bill, municipal khata copy or any such document could be shown to show the legal occupancy of the owner over the place of business as required under WBGST Act, 2017, corresponding to CGST Act, 2017 and the corresponding Rules made there under. 3. The authority mentioned that there was a need for physical examination of the goods and other verification of the documents produced before the proper officer. Show cause notice further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the supplier Company. As the supplier Company was a registered taxable person in the State of Assam, the petitioner did not have any information or did not have any mechanism to verify the details of the supplier Company. 8. There is no allegation of tax evasion against the petitioner. In such a situation, it was absolutely improper for the respondent authority to direct payment of penalty by the petitioner. 9. In support of the aforesaid submission the petitioner has relied upon the decision dated 04.02.2022 passed by the Hon ble Division Bench of the High Court of Punjab and Haryana in the matter of M/s. Shiv Enterprises Vs. State of Punjab Ors . wherein the Court after observing that the petitioner was not responsible for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roper system of scrutiny and verification of registration data, fraudsters are able to commit frauds with impunity. The respondents claim that the supplier M/S. Navaraj Trading Company is a dummy firm created only for committing the fraud. 13. Upon hearing the submissions made on behalf of the parties, it appears that though there was an allegation of non existence of the supplier Company leading to non-deposit of the input tax credit but later on 30.12.2023, that is prior to issuing of the show cause notice on 31.12.2023 the supplier Company already deposited the input tax. 14. Assuming there was an intention to evade tax on the part of the supplier, but later on by way of payment of tax, the allegation of intention to evade tax fall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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