TaxTMI 
TaxTMI 
2025 (11) TMI 1183
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....titions are being decided by a common judgment treated Writ Tax No. 1843 of 2024 as leading case. 3. By means of the present writ petition the petitioner has assailed the order dated 9.9.2024 passed by the Additional Commissioner (Appeal) -1, State Tax, Agra, respondent no.1 and the order dated 19.9.2023 for the year 2022-23 (February 2023 to March, 2023) under section 74 of the Act passed by the respondent no. 2. 4. Learned senior counsel for the petitioner submits that the petitioner is a registered company having GSTIN carrying on the business of manufacture and trading of mustard oil, mustard oil cake etc. on whole sale basis. In the normal course of business petitioner purchased raw material, i.e. mustard seeds from ex U.P. GSTN ....
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....once the registration of the selling dealer has been restored no action can legally be taken against the petitioner holding that the purchases have been made from unregistered dealer. He further submits that at the time of transaction being under taken the selling dealer was registered and subsequently the registration was cancelled, which has now been restored by the order dated 27.5.2024, therefore, the action taken against the the petitioner is futile. 6. He further submits that the transaction in question was duly accompanied with 5 tax invoices, 5 e-way bills, 5 transport bilties, 5 KUMS documents of Alwar, 5 KUMS Agra pre-arrival slip, 5 KUMS Agra Pravesh Parchi and 5 Dharam Kanta measurement parchi, which clearly show actual physi....
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....ne M/s Vijai Traders, Alwar Rajasthan. A proceeding has been initiated on the basis of the information being received that the said firm is not existing as its registration has been cancelled. Record further shows that the registration of the selling dealer was restored, copy of the same has been brought on record along with the rejoinder affidavit as annexure R.A.2. The said fact that the registration of the selling dealer has been restored has not been disputed by the learned ACSC. Once the registration of the selling dealer has been restored it cannot be said that all transactions made from an unregistered dealer. Record further shows that the petitioner has brought on record the documentary evidence along with the reply to the notice un....
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.... fact to evade tax on the part of the taxpayer, provisions of section 74(1) of CGST Act may be invoked for issuance of show cause notice, and such evidence should also be made a part of the show cause notice. " 12. On perusal of the aforesaid paragraphs, it is apparent that proceedings under section 74 can only be invoked when there is a fraud, wilfull mis-statement or suppression of fact to evade tax on the part of the taxpayer. It goes without saying that the circular issued by the higher authorities is binding upon the subordinate officers as held by the Apex Court in Suraj Impex (India) Private Limited vs. Union of India (2025) 30 Centax 362 (SC). Once the authorities have failed to record any finding of fact that there is a fraud or mi....