THE HON’BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HON’BLE SRI JUSTICE G.M.MOHIUDDIN Writ Petition No.27283 of 2025

Order

:

Heard Mr. M.Venkatram Reddy, learned counsel for the petitioner and Mr. Dominic Fernandes, learned Senior Standing Counsel for Central Board of Indirect Taxes and Customs (CBIC) appearing for the respondents.

2. Petitioner’s GST registration No.36CAPPM 6663N1ZR was cancelled with effect from 31.01.2025, vide Form GST REG-19 dated 11.04.2025, under Rule 22(3) of the Central Goods and Services Tax Rules, 2017 (for short ‘the Rules’), inter alia on number of grounds including the one that the petitioner has not been conducting any business from his declared place of business. Petitioner preferred an appeal. The appellate authority called for a report from the jurisdictional Superintendent. The jurisdictional Assistant Commissioner of Central Tax, Shamshabad GST Division, replied as follows:

“In this regard, it is informed that DGGI, Vizag who have booked a offence case the said unit, vide letter F.No.DGGI/ INV/GST/509/2025-Gr.A-0/o. ADG-GGI, dated 20.05.2025 opined that the prayer of the taxpayer does not merit for consideration. The relevant contents of the said letter are reproduced hereunder.

‘3. In this regard, it is informed that as per the Inspection Authorization No. 297/2024-25 dated 14.03.2025 issued by the Joint Director, DGGI, VZU for inspection of the business premises of M/s. MA Enterprises (GSTIN: 36CAPPM6663N1ZR) i.e., Second Floor, Plot No.28 EP, Krishnaveni Nagar, Saroor Nagar Main Road, Hyderabad, Rangareddy, Telangana, 500035, the inspection officers of DGGI, VZU visited the said premises on 18.03.2025. On reaching the premises, it was found that there was no business entity by name M/s. MA Enterprises or any person by name Shri Mohammad Abdul Rahman at the said premises.

Enquiry made with the people living near the premises revealed that M/s. MA Enterprises or any person with name Shri Mohammad Abdul Rahman have not conducted/conducting any business activity in the said premises. Subsequently, the inspection officers contacted Shri. Mohammad Abdul Rahman, Proprietor of M/s. MA Enterprises over phone at his mobile number 9642430487. But, Shri. Mohammad Abdul Rahman did not pick up the call. He never picked up the call despite repeated telephonic calls from the officers.

Subsequently, the officers approached the owner of the premises Ms. S. Shilpa Reddy, W/o Shri Depa Mahender Reddy and enquired her about the business activities of M/s. MA Enterprises in her premises i.e., Second Floor, Plot No 28 EP, Krishnaveni Nagar, Saroor Nagar Main Road, Hyderabad, Rangareddy, Telangana, 500035. In response, she stated that the aforesaid premises was owned by her; that one Hostel by name Elite Hostel for Men has taken the said premises on rent 8 years back and that still they are continuing in the said premises. Further, she stated that the premises was never rented out to any firm named M/s. MA Enterprises (36CAPPM6663N1ZR) or to any person named Shri Mohammad Abdul Rahman at any point of time and that no business/commercial activity is being carried out by the said firm in the said premises. She stated that the Rental Agreement dated 19.02.2024 said to be executed between her and Shri Mohammad Abdul Rahman is a fake document and the signature on the said Rental Agreement is different from her actual signature. Aforesaid proceedings were recorded under Panchanama dated 18.03.2025.

4. The non-existence of M/s. MA Enterprises (36CAPPM6663N1ZR) has been substantiated by the Panchanama dated 18.03.2025 drawn at the declared place of business.

5. As M/S. MA Enterprises (36CAPPM6663N1ZR) was found to be a fake/bogus entity which obtained GST registration fraudulently by uploading/submitting a fake rental agreement, this office vide letter dated 20.03.2025 requested the Jurisdictional AC to cause cancellation of the GST Registration of M/s. MA Enterprises (36CAPPM6663N1ZR) as per the provisions of Secti