2026 (4) TMI 666

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....ecember 2025), whereby the petitioner's registration has been cancelled in terms of the following operative order:- "ORDER 16. I order to maintain & continue the ab-initio cancellation of the Tax Payer GSTIN as the same is justifiable, sustainable & tenable in GST Law, in view of Discussion & Findings mentioned in the foregoing paras, under the provisions of Section 29(2)(a), Section 29(2)(e) of CGST Act, 2017 & Rule 21(e) of CGST Rules, 2017." 3. Mr. Shah has drawn our attention to paragraphs 9 and 10 of the impugned order to contend that the same has been passed on complete non-application of mind and without taking into consideration the material facts placed on record by the petitioner. He would further submit that ....

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....mentioned circumstances, the Taxpayer's GST returns are subject to further analysis. Also, the documents submitted by the Taxpayer are under scrutiny. 13.1 In light of the above history & facts on record, based on the buyer-supplier network analysis, I find that the Taxpayer has received most of its supplies from vendors whose purchase trail, ultimately leads to an entity that has no further suppliers and functioned as a fake ITC generator. Consequently, no actual tax has been paid in this chain of fictitious transactions. All entities involved in the chain, starting from the fake ITC generator entity up to M/s Florida Solvent, have contravened Section 16(2)(c) of CGST Act, 2017. This fraudulent exercise conducted by the Tax pa....

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....at the impugned order does not contain any cogent finding as to whether, in the normal course of business, the petitioner had validly availed the ITC. The absence of such finding renders the order arbitrary. 5. In our opinion, considering the nature of the documents, it was expected that the designated officer would record findings on those documents without merely being influenced by the fact that the registration of the suppliers in some cases stood cancelled, in what facts and circumstances we are not aware, such cancellation solely cannot itself be the basis for the cancellation of the petitioner's registration, unless the same is corroborated by tangible materials that the petitioner in some manner as the law would consider was a be....