GST Registration Cancelled as Supplier Was Non-Existent | Bombay HC

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  • Last Updated on 10 July, 2025

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GST registration cancellation

Case Details: Afzal Husain Altaf Husain Saiyed vs. Union of India - [2025] 175 taxmann.com 1027 (Bombay)

Judiciary and Counsel Details

  • M.S. Sonak & Jitendra Jain, JJ.
  • Pradeep Purohit for the Petitioner.
  • Karan Adik, Parimal Wagh & SD Deshpande for the Respondent.

Facts of the Case

The petitioner’s registration under the CGST Act and the Maharashtra GST Act was cancelled on the ground that Input Tax Credit had been availed without any genuine transactions of purchase or sale, as several major suppliers were found to be non-existent upon physical verification of their principal place of business. The petitioner had undertaken before the authorities to furnish all relevant documents in support of the genuineness of the transactions but failed to submit any documentary evidence. It was found that no credible records were produced to substantiate the claim that actual supplies had occurred. The authorities recorded that the suppliers were not found at their declared places of business and that the transactions appeared fictitious. The petitioner challenged the cancellation order, and the matter was accordingly placed before the Bombay High Court.

High Court Held

The Bombay High Court held that there were concurrent findings of fact by both authorities that the suppliers in question were found to be non-existent on physical verification. The Court observed that the petitioner failed to furnish any documentary evidence before the authorities to establish that the transactions of purchase and sale were genuine. It was held that the claim of Input Tax Credit was not supported by any verifiable documentation and was therefore bogus. The Court further noted that no perversity had been demonstrated in the findings of the lower authorities and hence no interference with the cancellation order was warranted.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied