The High Court (HC)of Kerala dismisses the writ petition on the case where the GST Proceedings were initiated with Incriminating Evidence to Prove Suppression of Sales.
K. Sanal Kumar, the petitioner challenged the order under Section 74 of the CGST/SGST Acts for the assessment years 2017-2018, 2018- 2019 and 2019-2020. The counsel appeared for the petitioner and stated that the entire proceedings are vitiated. It was alleged that the proceedings have been concluded based on certain materials allegedly recovered from the business premises of the petitioner including some computer data etc.
It was submitted that the petitioner was never given copies of the data allegedly recovered from the petitioner and the Officer has arbitrarily taken some figures to arrive at his conclusions. It is submitted that though the petitioner brought this matter to the notice of the Officer by filing rectification applications, the same has not been considered.
Justice Gopinath P observed that the proceedings have been concluded based on several incriminating materials recovered from the premises of the petitioner which are not restricted to the alleged computer records.
It was argued by the department that there is evidence to show that the petitioner had suppressed the sales turnover and had avoided the payment of tax which prompted the department to initiate proceedings under Section 74 of the CGST Act. It is submitted that the entire proceedings are based on facts collected by the department.
The Court denied interfering with the order based on the details/data recovered from computer systems. The writ petition fails and is dismissed by the Court. The Court directed that the recovery proceedings against the petitioner shall be kept in abeyance for a period of two weeks from today.
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