M/S. Bharath Global Impex vs. The State Of Andhra Pradesh
Original PDF →No AI summary yet for this judgment.
HON’BLE SRI JUSTICE U.DURGA PRASAD RAO AND HON’BLE SRI JUSTICE A.V.RAVINDRA BABU ORDER: (Per Hon’ble Sri Justice U.Durga Prasad Rao)
The petitioner challenges the order dated 03.08.2023 passed by the 2nd respondent, cancelling the petitioner’s GST registration.
Heard learned Senior Counsel Sri M.V.K.Murthy representing Sri M.V.J.K.Kumar, learned counsel for petitioner, and learned Government Pleader for Commercial Tax for respondents.
The main thrust of the argument of learned counsel for petitioner is that neither the show cause notice dated 12.06.2023 nor the final order dated 03.08.2023 contains details as to the allegations levelled against the petitioner and in spite of the show cause notice was awfully silent in that regard, except mentioning the provisions of the CGST Act and SGST Act, the petitioner dutifully submitted his reply dated 06.07.2023 and even without considering the same, the final order dated 03.08.2023 came to be passed.
2
Learned Government Pleader supported the impugned show cause notice as well as the final order dated 03.08.2023, submitting that the petitioner committed fraud in obtaining the registration and issued invoices without actual moment of the goods and thereby registration was duly cancelled.
In the light of the above respective submissions, we have perused the show cause notice dated 12.06.2023. The said show cause notice was issued with the following allegations: 1) Section 29(2)(e)-registration obtained by means of fraud, wilful misstatement or suppression of facts. 2) Rule 21(b)-person issues invoice or bill without supply of goods or services or both in violation of the provisions of the Act, or the rules made thereunder. 3) Rule 21(e)-person avails ITC in violation of the provisions of Section 16 of the Act or the rules made thereunder. 4) Rule 21(g)-person violates the provision of rule 86B.”
As rightly argued by the learned counsel for petitioner, except mentioning the provisions and their gist, the allegations levelled against the petitioner are not backed up by requisite particulars, so as to enable the petitioner to submit his reply. The 1st allegation shows that in terms of Section 29(2)(e), the petitioner
3
obtained registration by means of fraud, wilful misstatement or suppression of facts. The nature of fraud, or wilful misstatement, or suppression of facts is not delineated in the show cause notice. So also, other allegations do not contain requisite particulars.
(a) Then the petitioner submitted his reply dated 06.07.2023 denying the vague allegations levelled against him. Final order dated 03.08.2023 also as cryptic as it could be without there being any clear-cut reasons. It is mentioned as if the authorities found on verification of certain e-way bills issued and received by the taxpayers for the inward and outward supplies, that the vehicles with the given numbers as mentioned in the e-way bills did not pass through any one of the toll gates. Non-furnishing of the details of e-way bills or the vehicle particulars will not give any credence to the finding arrived at by the authority. Therefore, the cancellation order also is of without any clear particulars.
Therefore the writ petition is allowed and the impugned show cause notice dated 12.06.2023 and cancellation order dated 21.06.2023 are set aside with a direction to the 2nd respondent to restore the registration of the petitioner forthwith. However, the 2nd
4
respondent is at liberty to issue a fresh show cause notice to the petitioner with requisite particulars regarding the allegations levelled against the petitioner, to enable the petitioner to submit a suitable reply/objections and then to conduct enquiry and pass an appropriate order. No costs.
As a sequel, interlocutory applications pending, if any, in this case shall stand closed.
__________________________ U. DURGA PRASAD RAO, J.
_______________________ A.V.RAVINDRA BABU, J.
2023 NNN
5
117
HON’BLE SRI JUSTICE U.DURGA PRASAD RAO AND HON’BLE SRI JUSTICE A.V.RAVINDRA BABU
2023
NNN
Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.