GST registration cancellation sustained where invoices were unsupported by proof of actual supply and physical movement of goods.

GST registration cancellation was upheld where invoices were found to reflect paper transactions without proof of actual supply. The petitioner failed to produce convincing documentary evidence of physical movement of goods from Agra to Gwalior, and the authorities treated the bills as unsupported by real supply under Rule 21(b) of the CGST Rules, 2017. The appellate authority confirmed that finding, and no legal or factual infirmity was shown in the cancellation order.

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Issues: Whether cancellation of the petitioner's registration under the Central Goods and Services Tax Act, 2017 was justified on the ground that invoices were issued without actual supply of goods and the petitioner failed to produce cogent evidence of physical movement of goods.

Analysis: The registration was cancelled after a show-cause notice under Rule 21(b) of the Central Goods and Services Tax Rules, 2017, on the basis that the alleged transactions reflected paper invoices rather than actual supply. The appellate authority affirmed the cancellation. On the material on record, the petitioner did not produce convincing documentary proof to show that the goods were physically transferred from Agra to Gwalior. The finding that the bills were unsupported by actual supply and that the transaction did not stand proved was not shown to suffer from any legal or factual infirmity.

Conclusion: The cancellation of registration was upheld.

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