MS Enterprises Vs Sales Tax Officer Class-II (Delhi High Court)
In a recent ruling Delhi HC quashed the order cancelling the registration of CGST after considering the report of GST-Inspector who observed that he firm was in fact functioning at the registered place of business and that sufficient stocks of goods had also been maintained.
The writ petitioner is aggrieved cancellation of its registration under CGST which was affirmed by appellate authority. The order has been passed as petitioner failed to respond against Show Cause Notice. In between this period petitioner applied for the revocation of the order cancelling registration which was dismissed. Registration was cancelled after observation that the petitioner was not conducting business at the declared place and that he was issuing invoices without any corresponding supply of goods or services. GST authority also held that the firm was involved in passing on of inadmissible Input Tax Credit without actual supply of goods and services. During the appellate proceedings GST-Inspector was directed for field inspection who found that the firm was in fact functioning at the registered place of business and that sufficient stocks of goods had also been maintained. However, the appellate authority was convinced to dismiss the appeal solely on the ground that the GST-Inspector had also alleged in its report that the address particulars which were mentioned were different from those which existed on their record.
