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TMI Blog2023 (3) TMI 1169X X X X Extracts X X X X X X X X Extracts X X X X ..... b-initio. 3. The petitioner also impugns an order dated 09.03.2022 passed by respondent no.2, rejecting the petitioner's claim for input tax credit (hereafter 'ITC') of Rs.24,91,347/- (Twenty Four Lakh Ninety One Thousand Three Hundred And Forty Seven Rupees). The petitioner's claim for refund of ITC was rejected because the petitioner was found to be non-existent and non-functional at the registered place of business. The said order is also inextricably linked with the cancellation of the petitioner's GST registration. 4. The petitioner is, essentially, aggrieved by the denial of ITC refund consequent to the cancellation of its GST registration. Brief Facts 5. The petitioner is, inter alia, engaged in the business of manufacturing and supply of zipper fasteners, zipper sliders and other related products. The petitioner carries on his business under the name and style of his sole proprietorship concern named M/s A. S. Fastener. The said concern, with its principal place of business at Khasra No.80, Gali No.4, Samaypur Village, North West Delhi, Delhi, 110042, was registered under the Central Goods and Services Tax Act, 2017 (hereafter 'the Act') with effect from 02.07.2017 (bea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led of ITC of Rs.1,03,55,091/- in GSTR-3B. The third issue related to alleged wrong declaration of inverted/adjusted turn-over. Respondent no.2 found that the turn-over of inverted rated supply of goods and services was Rs.6,19,21,252/- and the adjusted turn-over of outward supplies was declared of Rs.6,43,16,025/-. However, the Form RFD-01 indicated the turn-over of inverted rated supply as Rs.6,19,93,478/- and the adjusted turn-over of outward supplies as Rs.6,43,88,251/-. The fourth issue related to ITC of Rs.1,28,175/- claimed in respect of three invoices. According to respondent no.2, a claim of ITC in respect of the said invoices was beyond the period stipulated under Section 54 of the Act. The fifth issue related to the allegation that the petitioner was non-existent at its place of business. Thereafter, the sixth and seventh issue related to non-declaration of transfer of goods and capital assets from the sole proprietorship concern to the firm. 12. Respondent no.1 issued a separate show-cause notice dated 04.01.2022 calling upon the petitioner to show cause as to why its GST registration should not be cancelled. The petitioner was called upon to appear before respondent n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for not submitting an application for cancellation of the registration; not furnishing proof of shifting of capital goods, stock of raw material etc; and not providing any evidence of the termination of the rent agreement. 17. Aggrieved by the order dated 22.02.2022 passed by respondent no.2, the petitioner filed an appeal before respondent no.3. The petitioner reiterated that he shifted the business to Haryana. He explained that he had not filed any application for surrendering his GST registration on account of closure of the business from the registered place of business, as his application for refund of ITC was yet to be processed. He also provided proof of termination of the rent agreement. The petitioner also explained that he was pursuing the proceedings for seeking revocation of cancellation of the GST registration solely to claim refund of accumulated ITC, which related to the manufacturing activity carried out during the period April, 2020 to March, 2021. He submitted that on receipt of the fund, he would apply for cancellation of registration. 18. Respondent no.3 rejected the aforesaid appeal by the order dated 31.10.2022, which is impugned in this petition. Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 021 along with e-way bills to establish that it was carrying on business from its place of business till July, 2021. In addition, the petitioner also attached sample purchase, sales invoices along with e-way bills and bank statement of payment and receipt of the said invoices for the period in question. He also claimed that the transfer of business as a going concern was not taxable. Reasons and Conclusions 24. At the outset, it is relevant to note that the learned counsel for the petitioner had submitted that the petitioner was desirous of surrendering his GST registration but had retained the same only for ensuring that his claim for refund of ITC is processed. A perusal of the impugned order dated 09.03.2022 rejecting the petitioner's application for refund of ITC indicates that the petitioner's request for refund of ITC was rejected principally on the ground that the petitioner was found to be non-existent by the Range Officer and his GST registration was cancelled. Insofar as the issues relating to discrepancies are concerned, the same were duly resolved. The petitioner had satisfactorily explained that there were no discrepancies as flagged by respondent no.2. Insofar as pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above, we find no ground for respondent no.1 to believe that the petitioner was non-existent from the date of its registration. 31. In terms of Section 29(2) of the Act, the proper officer has the discretion to cancel the registration from such date as he may deem fit if any of the reasons as set out in Section 29(2) of the Act are established. Section 29(2) of the Act is set out below: "29. Cancellation 1[or suspension] of registration- *** *** *** (2) The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,-- (a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or (b) a person paying tax under section 10 has not furnished 4[the return for a financial year beyond three months from the due date of furnishing the said return]; or (c) any registered person, other than a person specified in clause (b), has not furnished returns for 5[such continuous tax period as may be prescribed]; or (d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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