Case Law Details
Fairdeal Metals Limited Vs Asst. Commissioner of Revenue (Calcutta High Court)
In a recent verdict, the Calcutta High Court, Jalpaiguri Circuit Bench, addressed a case involving Fairdeal Metals Limited and the Assistant Commissioner of Revenue. The judgment revolves around the detention, seizure, and imposition of penalties on goods, with allegations suggesting fraudulent registration by the selling dealer to the petitioner.
Detailed Analysis: The petitioner sought the annulment of the detention order, a show cause notice, and a subsequent order. The allegations primarily focused on the supplier, Navaraj Trading Company, recently registered under the GST Act. The supplier’s documentation raised concerns, leading to suspicions of fictitious Input Tax Credit (ITC) circulation and evasion of tax.
The petitioner argued its lack of responsibility for the supplier’s actions, citing the supplier’s registration status in the State of Assam as a reason for the petitioner’s inability to verify details thoroughly. The petitioner highlighted the absence of tax evasion allegations against them, emphasizing the impropriety of penalizing them.
Reference was made to a Punjab and Haryana High Court decision in a similar case (M/S. Shiv Enterprises Vs. State of Punjab & Ors.), where the court set aside notices, emphasizing that the petitioner was not responsible for the alleged contravention.
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