Kartik Oil Industries (Huf) Vs State of Rajasthan (Rajasthan High Court)
The Rajasthan High Court considered a writ petition filed by Kartik Oil Industries (HUF) seeking quashing of the Order-in-Appeal dated 28.07.2023, whereby the Appellate Authority dismissed the petitioner’s appeal and upheld the Order-in-Original dated 12.06.2023 cancelling the petitioner’s GST registration.
The petitioner, a Hindu Undivided Family engaged in the business of trading edible oil, had been registered under the GST laws with effect from 18.01.2022. According to the petition, the petitioner purchased goods from registered suppliers against tax invoices, transported goods through tankers supported by goods receipts and e-way bills, made payments through banking channels, filed GST returns, and availed input tax credit.
The Court noted that the matter involved two rounds of proceedings. During the first round, a physical verification conducted on 16.12.2022 recorded that the petitioner’s declared place of business was closed and no business activity was found. Based on that report, a show cause notice in Form GST REG-31 proposing cancellation of registration was issued and the registration was suspended. The petitioner submitted its reply on 20.12.2022, responded to summons issued under Section 70 of the RGST Act, 2017, and furnished the required documents. After considering the material, the authorities dropped the cancellation proceedings by order dated 08.03.2023 in Form GST REG-20, and the suspension was revoked.
