GST Update

 Desk of CA Praveen Sharma – 955 Series (CAPS) 

Madhya Pradesh High Court in the case of Sitaram Sales Company dealt with issues relating to GST search, seizure, prohibition orders and cancellation of registration.

The case arose when GST authorities conducted a search at the business premises and alleged discrepancies in stock. Based on this, seizure and prohibition orders were issued and further proceedings for confiscation were initiated. Subsequently, registration of the taxpayer was also cancelled despite submission of reply.

Aggrieved by these actions, the taxpayer approached the High Court by filing a writ petition challenging all proceedings including cancellation of registration.

The Court examined whether such writ petition was maintainable. It observed that the GST law already provides a proper appellate mechanism against such orders. Since an effective alternative remedy was available, the Court held that the writ petition cannot be entertained.

However, considering that the taxpayer had already applied for release of seized goods, the Court directed the department to decide such application within 30 days.

The petition was disposed of with liberty to the taxpayer to approach the appellate authority.

This ruling reinforces that taxpayers should normally follow the statutory appeal route instead of directly approaching High Courts.

link:CA. Praveen Sharma on Linkedin

Regards
CAPS