The Writ Appeal filed under Section 2(1) of the Madhya Pradesh Uchch Nyayalaya (Khand Nyay Peeth Ko Appeal) Adhiniyam, 2005, challenges the order dated August 27, 2019, issued by the learned Single Judge in Writ Petition No. 9885/2019. This writ petition contested the order dated April 18, 2019, passed by the learned appellate authority, which was subsequently dismissed.
The appellant, a dealer registered under the Central Goods and Services Tax Act, 2017 (referred to as the ‘Act of 2017’), operates a business selling and purchasing Clarified Butter (Ghee), Butter, and other milk products under the name of M/s Om Trading Company Gwalior. On October 5, 2018, a show cause notice was issued by the Deputy Commissioner of State Tax, Gwalior, alleging that the appellant’s business operations were only on paper, and although e-way bills were generated, the relevant vehicles were not transporting any actual goods.
The matter escalated with the submission of a report dated August 29, 2018, from the Deputy Commissioner, Range-A, Agra, to the Joint Commissioner, Gwalior. This report revealed business transactions between the appellant and M/s Macro International, Kacharighat, Agra, wherein the appellant allegedly purchased 8100 kgs of clarified butter through bill No. 53 on July 31, 2018, amounting to Rs. 23,49,000/-, and later purchased 1000 tins of clarified butter through bill No. 54, amounting to Rs. 40,50,000/-. Consequently, a show cause notice dated October 5, 2018, was issued under Rule 21(b) of the Central Goods and Services Tax Rules 2017 (referred to as the ‘Rules of 2017’). This rule stipulates that the registration granted to a person can be cancelled if invoices are issued without the actual supply of goods, which was allegedly the case here.
In response to the show cause notice, the appellant filed a writ petition challenging the order dated April 18, 2019, passed by the appellate authority. However, the learned Single Judge dismissed this petition on August 27, 2019, prompting the filing of the present Writ Appeal.
The crux of the matter revolves around the alleged discrepancies in the appellant’s business operations, primarily related to the issuance of invoices without actual supply of goods. The appellant contests the validity of the show cause notice and subsequent orders, seeking relief through the judicial process.
