Judicial Corner: Cancellation of assessee’s registration upheld as supplier non-existent and no genuine transaction proof – Bombay High Court (21.07.2025)

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Cancellation of assessee’s registration upheld as supplier non-existent and no genuine transaction proof – Bombay High Court{Afzal Husain Altaf Husain Saiyed V/s Union of India (2025) 32 Centax 190 (Bom.)}

Issues:

Whether the cancellation of GST registration under Section 29(2) read with Rule 21 of the CGST Rules, 2017, was justified

Facts:

  • The assessee claimed ITC based on transactions with suppliers who were found to be non-existent upon physical verification.
  • Despite opportunities, the assessee failed to produce documentary evidence such as invoices, e-way bills, or bank statements to substantiate the genuineness of the transactions.

Held:

  • The Court found no procedural lapses in the cancellation process and noted that the assessee did not discharge the burden of proof to establish the genuineness of the ITC claims.
  • The cancellation of GST registration was upheld, reinforcing that ITC claims must be supported by verifiable documentation and that the burden of proof lies with the claimant.