City Lights and Equipments Vs State of Meghalaya (Meghalaya High Court)
Summary: The Meghalaya High Court dismissed the writ petition filed by M/s City Lights and Equipments challenging tax, interest and penalty demands arising from an inspection conducted on 03.06.2020 and subsequent orders dated 08.02.2021 and 26.04.2024. The petitioner contended that rough estimates, notepads, estimate books and cash memos seized during inspection represented quotations and rough notes rather than actual sales, and argued that the authorities had incorrectly treated them as suppressed turnover, applied an 18% GST rate despite the goods allegedly falling within lower rate slabs, ignored GST returns, bank deposits, tax invoices and stock records, and failed to conduct a proper assessment or stock verification. The petitioner also alleged violation of natural justice because the Additional Commissioner who had authorised the inspection subsequently acted as the appellate authority. Reliance was placed on Godrej Sara Lee Ltd. Vs Excise and Taxation Officer cum-Assessing Authority & Ors., CBI Vs. V.C. Shukla and other authorities concerning disputed evidence and writ jurisdiction. The State opposed the petition on the ground of the statutory appellate mechanism under the CGST Act/MGST Act and submitted that the controversy involved factual determination concerning the seized records, actual sales, applicable GST rate and reconciliation of returns and bank deposits.
