Registration of purchasing dealer cannot be cancelled for fraud committed by selling dealer: HC

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 24 November, 2021

Recent Posts

Blog, News, FEMA & Banking

HC Grants Bail to Petitioner Accused of Cash Handling in Goa Elections Citing Weak Case and No Risk of Tampering Evidence

Blog, News, Income Tax

CIT(E) Cannot Refuse Trust Registration by Speculating Potential Benefits to Specified Individuals | ITAT

Latest from Taxmann

GST Registration - Revocation of cancelled registration

Case Details: Bright Star Plastic Industries v. Additional Commissioner of Sales Tax - [2021] 132 taxmann.com 146 (Orissa)

Judiciary and Counsel Details

    • Dr. S. Muralidhar, CJ. and B.P. Routray, J.
    • P.K. Harichandan, Adv. for the Petitioner. 
    • S.S. Padhy and S. Mishra, ASC for the Respondent.

Facts of the Case

The show cause notice was issued to the petitioner for cancellation of registration alleging the claim of input tax credit on fake invoices issued by non-existent supplier. It filed clarification but registration was cancelled holding that clarification submitted was not satisfactory. It filed for revocation of cancellation of registration but it was rejected. Thereafter, appeal was filed before the Appellate Authority and the same was also rejected. It filed writ petition against the same.

High Court Held

The Honorable High Court observed that the department would have to show that somehow the purchasing dealer and selling dealer acted in connivance to defraud the revenue. However, the department failed to show that the petitioner as a purchasing dealer deliberately availed of the ITC in respect of the transactions with an entity knowing that such an entity was not in existence. Thus, the department was directed to restore the petitioner’s registration by issuing appropriate orders/directions.

Case Review

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied