TaxTMI 
TaxTMI 
2026 (10) TMI 1379
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.... October, 2026. 2. In the second line of paragraph 2, the date shall be read as '14th October 2026' in place and stead of '14th December, 2026'. 3. The order dated 12th October, 2026 is corrected accordingly. The remaining part of the said order will remain unaltered. 4. Let this order be read along with the order dated 12th October, 2026. 5. The petitioners have filed the present writ petition challenging inter alia, the legality, validity and sustainability of the issuance of the show cause notice dated 17.1.2025 in Form GST DRC 01 along with the consequential order dated 14.01.2026 passed under Central Goods and Services Act, 2017 including the show cause notice for cancellation of registration and the order of cancellation o....
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.... past, which the Commissioner or an officer authorized by him has reasons to believe, was fraudulently availed or was ineligible. Such an interpretation would in effect amount to construe an order under Rule 86A(1) of the Rules as an order for recovery of tax. This is obvious because the taxpayer would now have to incur a larger cash outflow for payment of taxes as he would be denied utilization of validly availed ITC, which he would require to accumulate to compensate for the ITC availed and utilized which the Commissioner or an officer authorized by him, has reasons to believe was fraudulently availed or was ineligible." 10. Learned counsel appearing for the CGST Authorities vehemently opposes the submission made by the petitioner and ....
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....hat despite filing a reply to the show cause notice dated 16.2.2025 and the same be uploaded on the common portal of the GST Authorities in Form GST DRC 06 which is evident from page 91 of the writ petition, the Adjudicating Authority has arrived at an erroneous finding and has passed an order ex parte confirming the demand of Rs. two crores 90 lakhs including tax and penalty. 15. Since the petitioners have not filed the returns for the last six months as supported by the GST Authorities, the registration of the petitioners were cancelled. Such decision taken by the authority concerned including blocking the ECL negatively is dehors the mandate of the settled principles of law. 16. In light of Deputy Director, Directorate General of G....