Tvl. Sri Balajee Udyog Vs Assistant Commissioner (ST) (Madras High Court)
Madras HC Dismisses Plea Against GST Registration Cancellation Over Suspicious E-Way Bill, ITC Claims, Dual GST Registration at Same Premises and for Failure to Prove Physical Movement of Goods
The writ petition challenged the order dated 27.01.2025 passed in Appeal No. AP/GST/4237/2024, by which the petitioner’s appeal against cancellation of GST registration (order dated 29.11.2024) was rejected. The original cancellation order cited misuse of Input Tax Credit (ITC), failure to establish actual physical movement of goods, and suspicious transportation details in sales invoices and e-way bills, including mention of “TMYCYCLE/TRICYCLE” without motor vehicle registration numbers and non-updation of Part B of e-way bills. The Proper Officer held that the petitioner failed to prove genuineness of transactions as required under Section 16(2)(b) and Section 155 of the TNGST Act, 2017, and relied on judicial precedents including State of Karnataka v. Ecom Gill Coffee Trading Pvt. Ltd. and M/s Aastha Enterprises v. State of Bihar. The registration was retrospectively cancelled with effect from 05.04.2022.
On appeal, the petitioner contended that the quantum of ITC was incorrectly calculated and that relevant documents were furnished but not verified. The Appellate Authority observed that even assuming the lower ITC figure claimed by the petitioner, the volume of goods was substantial, making transportation through non-motorized conveyance implausible. It further noted that the petitioner and another entity, Tvl. Gaurav Metal, operated from the same principal place of business, which was found locked during inspection. The Authority concluded that it was impracticable to maintain separate stock for two entities dealing in the same commodity at the same premises, raising the possibility of manipulation. The appeal was dismissed.
