Case Law Details
Sri Balaji Metals And Minerals Private Ltd. Versus Union of India (Chhattisgarh High Court)
In a significant decision by the Chhattisgarh High Court, Sri Balaji Metals And Minerals Pvt. Ltd. received interim relief in a GST case against the Union of India. The company had been facing investigation from both the Central Goods and Services Tax (C.G.S.T.) and the Directorate General of Goods and Services Tax Intelligence (D.G.G.I.) after their service provider’s registration was cancelled.
The contention of Sri Balaji Metals was that the dual action taken against them was illegal, and the denial of credit based on the supplier being a non-existent entity was incorrect. They also argued that there were no grounds for ‘roving enquiries’ in place of a statutory audit under Section 65 of the GST Act. The court, taking a prima facie view, directed that no further orders would be passed until the next date of hearing, acknowledging that the tax paid was shown on the GST portal of the petitioner.
Conclusion: This decision by the Chhattisgarh High Court comes as a significant relief to Sri Balaji Metals And Minerals Pvt. Ltd. and potentially sets a precedent for similar cases. The final outcome of this case could influence how such disputes are handled in the future, particularly in cases where the registration of a supplier is retrospectively cancelled. It also highlights the importance of the digital GST portal in verifying the payment and credit of taxes. The next hearing, scheduled for the week of July 24, 2023, will be keenly anticipated.
The matter was argued by Ld. Counsel Bharat Raichandani
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