Case Details: Tvl. Sri Balajee Udyog vs. Assistant Commissioner(ST) - [2026] 186 taxmann.com 218 (Madras)
Judiciary and Counsel Details
- G. Jayachandran & Shamim Ahmed, JJ.
- G. Natarajan & A.M. Venkata Krishnan for the Appellant.
- Ms Amirta Poonkodi Dinakaran, GA for the Respondent.
Facts of the Case
The appellant challenged the cancellation of its GST registration, contending that it had submitted detailed replies and participated in the personal hearing pursuant to a show cause notice (SCN) seeking proof of actual movement of goods corresponding to Input Tax Credit (ITC) claims. The Department, however, found during inspection that the premises were inadequate and that no transport documents evidencing the movement of goods were furnished, while records indicated the use of fake invoices and fabricated documents to avail ITC. Despite producing print-outs of e-way bills, the appellant failed to substantiate the genuineness of transactions or the actual movement of goods, leading to the cancellation of registration, which was affirmed by the appellate authority. The appellant preferred an intra-court appeal against the said orders. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the cancellation of GST registration was justified due to fraudulent availment of ITC in violation of Section 16 read with Section 29 of the CGST Act and Tamil Nadu GST Act, supported by fake invoices and absence of proof of actual movement of goods. It was observed that mere production of e-way bill print-outs, without supporting transport documents, was insufficient to establish genuine supply transactions under the GST framework. The Court further held that an adequate opportunity had been granted to the appellant to produce evidence of the movement of goods, which was not discharged satisfactorily. Accordingly, the Court upheld the concurrent findings of the authorities. It dismissed the intra-court appeal and affirmed the cancellation of registration.
List of Cases Reviewed
- Tvl. Sri Balajee Udyog v. Assistant Commissioner (ST), Chennai [2026] 183 taxmann.com 240 (Madras) (Para 4), affirmed
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