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TMI Blog2024 (2) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... legation has been made against the supplier from whom the petitioner procured the goods. Show cause notice mentions that M/S. Navaraj Trading Company i.e., the supplier of the petitioner was registered recently under the GST Act with effect from 09.10.2023 in the State of Assam. M/S. Navaraj Trading Company has shown the nature of occupancy over the place of business as 'rented' and in support of its claim rent agreement and the trade license was supplied. No documents like electricity bill, municipal khata copy or any such document could be shown to show the legal occupancy of the owner over the place of business as required under WBGST Act, 2017, corresponding to CGST Act, 2017 and the corresponding Rules made there under. 3. The authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05.01.2024 order was passed directing payment of penalty. 7. The specific contention of the petitioner is that the petitioner was not supposed to know the antecedents of the supplier Company. As the supplier Company was a registered taxable person in the State of Assam, the petitioner did not have any information or did not have any mechanism to verify the details of the supplier Company. 8. There is no allegation of tax evasion against the petitioner. In such a situation, it was absolutely improper for the respondent authority to direct payment of penalty by the petitioner. 9. In support of the aforesaid submission the petitioner has relied upon the decision dated 04.02.2022 passed by the Hon'ble Division Bench of the High Court of Punj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re often incorrect/incomplete and the details revealed in the registration forms are also false. As entry barrier is very low, and there is a lack of a proper system of scrutiny and verification of registration data, fraudsters are able to commit frauds with impunity. The respondents claim that the supplier M/S. Navaraj Trading Company is a dummy firm created only for committing the fraud. 13. Upon hearing the submissions made on behalf of the parties, it appears that though there was an allegation of non existence of the supplier Company leading to non-deposit of the input tax credit but later on 30.12.2023, that is prior to issuing of the show cause notice on 31.12.2023 the supplier Company already deposited the input tax. 14. Assuming ..... X X X X Extracts X X X X X X X X Extracts X X X X
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