M/S. Hero Wiretex Limited vs. Union Of INDIA
Held
The Court held that cancellation of registration under Section 29(2)(a) of the APGST Act requires a prior determination by a judicial or quasi-judicial authority that a contravention has occurred. Invoking the provision without such a finding is premature.
Facts
The petitioner's GST registration was cancelled based on allegations of fraudulently availing input tax credit without corresponding goods movement. The cancellation was challenged as premature, as no final finding of contravention had been made by any competent authority.
Key Issues
Whether the cancellation of GST registration is premature when no final finding of contravention has been made by a competent authority. Whether Section 29(2)(a) of the APGST Act can be invoked without a prior determination of contravention.
Sections Cited
Section 29(2)(a), Section 70
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE G.NARENDAR AND THE HON’BLE SRI JUSTICE NYAPATHY VIJAY
WRIT PETITION No.30347 of 2023
ORDER:- (Per Hon’ble Sri Justice G.Narendar)
Heard learned counsel for the petitioner and learned Government Pleader for Commercial Tax for respondents 3 and
The petitioner is before this Court being aggrieved by the order of cancellation of registration on the premise that the same is pre-mature and that the material indicate a complete non-application of mind and an erroneous appreciation and understanding of the law by the authority, namely the Directorate General of GST Intelligence (D.G.G.I.).
The learned counsel for the petitioner would contend that the proceedings could not have been set in motion on an unproven allegation.
It is the case of the petitioner that an allegation was leveled against the petitioner company alleging that they have fraudulently availed of input tax credit without there being any corresponding movement of goods. In sum and substance the
2 petitioner is alleged to have claimed input tax credit, without ther
The judgment continues below.
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