Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 27TH DAY OF FEBRUARY 2024 / 8TH PHALGUNA, 1945 WP(C) NO. 7695 OF 2024 PETITIONER/S:
A.A TRADERS AJMAL INDUSTRIES, VATTAKKATTUPADY, PERUMBAVOOR -P.O, ERNAKULAM , REPRESENTED BY ITS PROPRIETOR SRI. E.A ALIMON, PIN - 683542 BY ADVS.
AJI V.DEV ALAN PRIYADARSHI DEV S.SAJEEVAN RESPONDENT/S:
1 THE SUPERINTENDENT, CENTRAL TAX & CENTRAL EXCISE, PERUMBAVOOR RANGE, G ARCADE, NEAR K.S.R.T.C BUS STAND, PERUMBAVOOR, PIN - 683542 2 THE DEPUTY COMMISSIONER, CENTRAL TAX & CENTRAL EXCISE, PERUMBAVOOR DIVISION, G ARCADE, NEAR K.S.R.T.C BUS STAND, PERUMBAVOOR, PIN - 683542 3 THE CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS, REPRESENTED BY ITS CHAIRMAN, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI, PIN - 110001 OTHER PRESENT:
SREELAL N. WARRIER -SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 7695 OF 2024 2 JUDGMENT Dated this the 27th day of February, 2024 The present writ petition has been filed impugning the orders in Ext.P3 and Ext.P7 dated 31.10.2023 and 20.02.2024 respectively.
The petitioner obtained the registration under the provisions of CGST / SGST Act, 2017 with the Registration Number (GSTIN/ Unique ID): 32AVGPA6374AIZ6. On the basis of the evidence collected, it was noticed that the petitioner had obtained registration on the basis of the fraud, willful misstatement or suppression of facts. The petitioner was not doing any business but the petitioner was issuing forged invoices to the parties to claim the input tax credit.
2.On the basis of the aforesaid material, Ext.P3 show cause notice dated 31.10.2023, was issued to the petitioner asking the petitioner to show cause as to why the petitioner’s registration should not be cancelled under Section 29(2)(e) of the CGST / SGST Act, as he has obtained the registration by means of fraud, willful misstatement or suppression of facts. The petitioner was also afforded an opportunity of personal hearing but the petitioner failed to file a reply to the said show cause notice nor he appeared before the concerned authority.
3. In view thereof, the impugned order in Ext.P4 dated
WP(C) NO. 7695 OF 2024 3 14.11.2023 came to be passed canceling the registration of petitioner. The petitioner filed an application in Ext.P6 for the revocation of the cancellation. The petitioner’s said application was considered and impugned order in Ext.P7 dated 20.02.2024 came to be passed rejecting the application for revocation of cancellation.
The Ext.P7 order dated 20.02.2024 is read as under:- Order of Rejection of Application for Revocation of Cancellation “This has reference to your reply filed vide ARN AA320124000843X dated 02.01.2024. The reply has been examined and the same has not been found to be satisfactory for the following reasons:
It is included in fake ITC transfer/List of HQ. This office done verification and prepared the Mahazar. The tax payer is not working at the registered premises as per Mahazar. No firm was no sign board. The finding of RO/VC is that the taxpayer had availed ineligible ITC from those Fake/non existing firms.
Therefore, your application is rejected in accordance with the provisions of the Act. “ Considering the allegation that the petitioner had obtained the registration and issued fraudulent forged invoices to other parties to claim the input tax credit without conducting any business, this court cannot interfere with the impugned order.
In view thereof, the writ petition is dismissed as above.
Sd/- DINESH KUMAR SINGH JUDGE SJ
WP(C) NO. 7695 OF 2024 4 APPENDIX OF WP(C) 7695/2024 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE GST REGISTRATION CERTIFICATE ISSUED TO THE PETITIONER DATED: 16.02.2022 Exhibit P2 TRUE COPY OF THE LEASE AGREEMENT DATED:
25.08.2021 WITH ENGLISH TRANSLATION Exhibit P2(a) TRUE COPY OF THE LEASE AGREEMENT VALID FROM 01.09.2022 WITH ENGLISH TRANSLATION Exhibit P3 TRUE COPY OF THE SHOW CAUSE NOTICE (SCN) ISSUED DATED 31.10.2023 Exhibit P4 TRUE COPY OF THE ORDER FOR CANCELLATION OF REGISTRATION IN FORM GST REG-19 DATED:
14.11.2023 Exhibit P5 TRUE COPY OF THE SHOW CAUSE NOTICE FOR REJECTION OF APPLICATION FOR REVOCATION OF CANCELLATION OF REGISTRATION ISSUED DATED:
24.01.2024 Exhibit P6 TRUE COPY OF THE LETTER FILED BY THE PETITIONER DATED NIL IN RESPONSE TO EXT.P.5 Exhibit P7 TRUE COPY OF THE ORDER OF REJECTION OF APPLICATION FOR REVOCATION OF CANCELLATION DATED: 20.02.2024