GST registration cancellation upheld as factual disputes require statutory appeal under Section 107 TNGST Act

Madras HC dismissed writ petition challenging GST registration cancellation for non-compliance with GST Act provisions and alleged bill trading without actual goods supply. Court held the cancellation order dated 25.04.2023 was appealable under Section 107 of TNGST Act, 2017. Disputed factual questions regarding petitioner's business operations could not be decided in summary writ proceedings under Article 226. Petitioner granted liberty to file statutory appeal before Appellate Authority within 30 days from receipt of order copy.

---

---

Issues Involved:
The case involves challenging an Assessment order for the Assessment year 2021-2022 based on a Show Cause Notice for cancelling GST registration due to non-compliance with GST Act provisions, specifically related to Bill Trading activities.

Challenged Assessment Order and Show Cause Notice:
The petitioner, a private limited company, challenged the impugned Assessment order dated 25.04.2023, which confirmed the demand proposed in the Show Cause Notice issued on 19.07.2022 for cancelling the GST registration due to alleged non-compliance with GST Act provisions.

Petitioner's Defense and Allegations:
The petitioner argued that it was unaware of subsequent notices and proceedings due to defending against the initial Show Cause Notice. The petitioner claimed innocence, stating it was engaged in legitimate business activities and not Bill Trading as alleged by the respondent.

Respondent's Defense and Allegations:
The respondent defended the impugned order by highlighting various actions taken, including inspections, notices, and summonses served on the petitioner. The respondent accused the petitioner of engaging in Bill Trading and facilitating tax evasion through fraudulent practices.

Court's Analysis and Decision:
The Court considered arguments from both sides and found prima facie evidence of Bill Trading activities by the petitioner, leading to the cancellation of GST registration. The Court dismissed the Writ Petition, advising the petitioner to file a statutory appeal within 30 days while keeping coercive steps on hold upon pre-depositing the prescribed amount.

Conclusion:
The Court's decision upheld the impugned Assessment order, emphasizing the seriousness of the allegations related to Bill Trading and tax evasion. The petitioner was given the opportunity to appeal the decision within a specified timeframe, subject to meeting certain conditions.

---