Transaction cannot be suspected when GST registration of other end dealer is cancelled with retrospective effect

Last updated: 29 December 2022
Quick Summary
The Calcutta High Court has ruled that a business transaction cannot be deemed suspicious solely because the other party's GST registration was cancelled retrospectively. The court found that the Revenue Department's order cancelling the assessee's GST registration was a non-speaking order, lacking independent findings against the assessee. The matter was remanded for fresh consideration, requiring an opportunity for a personal hearing.

Court :
Calcutta High Court

Brief :
The Hon’ble Calcutta High Court in M/s Shraddha Overseas Private Limited & Anr. v. The Assistant Commissioner of State Tax [M.A.T No.1860 of 2022 dated December 16, 2022] set aside the order passed by the Revenue Department cancelling Goods and Services Tax ("GST") Registrations of the assessee on the grounds of suspicion. Held that, the transaction cannot be suspected merely on the grounds that the GSTRegistration of the other-end dealer was cancelled with retrospective effect.

Citation :
M.A.T No.1860 of 2022 dated December 16, 2022

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Bimal Jain
Published in GST
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