TaxTMI 
TaxTMI 
2023 (10) TMI 932
X X X X Extracts X X X X
X X X X Extracts X X X X
....e provisions of Kerala Value Added Tax Act, 2003 till 30.6.2017 and, thereafter, under the provisions of CGST/SGST Acts. The petitioner claimed that he had started his business on the rented premises as mentioned in the memo of the parties. It is stated that the petitioner had to stop the business activities temporarily with effect from 1st October 2022 for unforeseen reasons. However, he continued to file returns under the GST regime. The petitioner was issued a show cause notice on 13.06.2023. The show cause notice would reveal that the registration of the petitioner was sought to be cancelled for the following reasons: i) Person does not conduct any business from the declared place of business. ii) Person issues invoice or bill without supply of goods or services. 3. The petitioner submitted a reply to this show cause notice on 21st June 2023 stating that the business premises of the petitioner was temporarily closed and that he would resume business activities once the conditions improve. Despite the aforesaid reply, cancelling the registration granted to the petitioner, Exts. P4 and P5 have been issued. 4. Sri Harisankar V Menon, learned counsel for the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mpugned, and there has been no violation of the principles of natural justice as contended, this Court may dismiss the writ petition in limine. 8. I have considered the submissions. 9. Section 29 and Rule 21(a) GST Rules which are relevant for the purpose of the present Writ Petition reads as under : Section 29. Cancellation or suspension of registration : (1) The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,- (a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or (b) there is any change in the constitution of the business; or (c) the taxable person is no longer liable to be registered under section 22 or section 24 or intends to opt out of the registration voluntarily made under sub-section (3) of section 25: Provided that during pendency of the proceedings relating to can....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed: Provided that in case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher. (6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed. Rule 21. Registration to be cancelled in certain cases The registration granted to a person is liable to be cancelled, if the said person, _ (a) does not conduct any business from the declared place of business; 10. On the basis of the materials and enquiries made, the State Tax Officer came to the conclusion that no business activity was carried out by the petitioner from the declared place of business. Upon such conclusion, the State Tax Officer would be well within the power to cancel the registration after affording an opportunity of being hear....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ircumstances, the assessee could prove the correctness and completeness of his return only by showing that the entries in the books of account of Hazi Usmankutty and other wholesale dealers were false, bogus or manipulated and that the return submitted by the assessee should not be disbelieved on the basis of such entries, and this obviously, the assessee could not do, unless he was given an opportunity of crossexamining Hazi Usmankutty and other wholesale dealers with reference to their accounts. Since the evidentiary material procured from or produced by Hazi Usmankutty and other wholesale dealers was sought to be relied upon for showing that the return submitted by the assessee was incorrect and incomplete, the assessee was entitled to have Hazi Usmankutty, and other wholesale dealers summoned as witnesses for cross-examination. It can hardly be disputed that cross-examination is one of the most efficacious methods of establishing truth and exposing falsehood. Here, it was not disputed on behalf of the Revenue that the assessee in both cases applied to the Sales Tax Officer for summoning Hazi Usmankutty and other wholesale dealers for cross-examination, but his application was t....