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2015 (4) TMI 359 - HC - VAT and Sales TaxCancellation of registration - involvement of the petitioner in bogus billing activities - Held that:- Though the petitioner has filed replies before the Commissioner, the Commissioner proceeded to adjudicate the show cause notices and cancelled the registration of the petitioner on the incorrect premise that the petitioner never remained present nor filed replies. Even after the petitioner had not personally been present, if there were any written replies filed by the petitioner, the Commissioner was duty bound to take the same in consideration before coming to any final finding with respect to the allegations made in the showcause notices and passing any order adverse to the petitioner. In the present case, decision in the order in original passed by the Commissioner is rather brief, it only refers to nonparticipation of the petitioner in the proceedings and in the later portion proceeded to confirm the proposal of cancellation of registration on the premise that the petitioner had indulged in the bogus billing activities. There are fundamental flaws in the approach of the Commissioner. Firstly, as noted earlier, the petitioner had made representations in writing. Contentions raised in the petition were therefore required to be taken into account before the Commissioner could take any final decision. Secondly, without any discussion on material on record, even in an exparte proceeding, the Commissioner could not have jumped to the conclusion that the petitioner had indulged in bogus billing activities leading to revenue loss of ₹ 51 lakhs. At least a brief discussion on material on record was necessary. - Matter remanded back - Decided in favour of assessee.
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