Matter requires consideration that whether there will be any impact on genuineness of the purchase transaction if registration of selling dealer have been cancelled, a few months after the purchase though at the time of purchase of goods/stocks, the registration of the selling dealer was valid.
Section 107 of the CGST Act, 2017 — Appeal —–The petitioner challenged the order dated 28.11.2020 passed by the Appellate Authority arising from proceedings under Section 73 of the Act, 2017 for the period October, 2018. Since, no Tribunal has yet been constituted, the present petition is being entertained at this stage. The counsel for the petitioner submitted that at the time of purchase of goods/stocks, the registration of the selling dealer was valid. The fact that such registration may have been cancelled, a few months thereafter would not have any impact on the genuineness of the transaction. The court observed that the matter requires consideration.
Held that:- The Hon’ble High Court issued notice and directed that subject to the petitioner depositing 20% of the amount of tax in dispute, the balance recovery, shall remain stayed.
Matter requires consideration that whether there will be any impact on genuineness of the purchase transaction if registration of selling dealer have been cancelled, a few months after the purchase though at the time of purchase of goods/stocks, the registration of the selling dealer was valid.
Section 107 of the CGST Act, 2017 — Appeal —–The petitioner challenged the order dated 28.11.2020 passed by the Appellate Authority arising from proceedings under Section 73 of the Act, 2017 for the period October, 2018. Since, no Tribunal has yet been constituted, the present petition is being entertained at this stage. The counsel for the petitioner submitted that at the time of purchase of goods/stocks, the registration of the selling dealer was valid. The fact that such registration may have been cancelled, a few months thereafter would not have any impact on the genuineness of the transaction. The court observed that the matter requires consideration.
Held that:- The Hon’ble High Court issued notice and directed that subject to the petitioner depositing 20% of the amount of tax in dispute, the balance recovery, shall remain stayed.