M/S. Bright Star Plastic Industries vs. Addl. Commnr. Of State Tax(Appeal)
Held
The Court held that the cancellation of a purchasing dealer's registration cannot be automatic for fraud committed by the selling dealer, especially when the selling dealer's registration was cancelled after the purchases were made. The department failed to prove the purchasing dealer's knowledge of the selling dealer's non-existence.
Facts
The petitioner's GST registration was cancelled on the grounds of claiming Input Tax Credit (ITC) against fake invoices from a non-existent supplier. The petitioner's application for revocation of cancellation was rejected, and the subsequent appeal was also dismissed.
Key Issues
Whether a purchasing dealer's GST registration can be cancelled due to the fraudulent acts of a selling dealer, and if the purchasing dealer had knowledge of the selling dealer's non-existence at the time of purchase.
Sections Cited
Section 30(2), Section 74(5), Section 74(1), Rule 22(1), Rule 142(1A), Rule 142(1), Rule 21
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER 04.10.2021 Order No.
Dr. S. Muralidhar, CJ.
The Petitioner, who is a dealer registered under the Odisha GST Act, has filed this petition questioning the order dated 5th April, 2021 passed by the Additional Commissioner of CT & GST (Appeal), Bhubaneswar rejecting the Petitioner’s appeal questioning the order passed by the learned Proper Officer (LPO) rejecting the Petitioner’s application for revocation of cancellation of his registration on 7th January, 2021 under Section 30(2) of the OGST Act.
The background facts are that the Petitioner is carrying on the business of manufacturing and trade of Poly Vinyl Chloride (PVC) pipes, high-density polyethy
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Orissa High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.