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Subject to the petitioner depositing 20% of the amount of tax in dispute, the balance recovery, shall remain stayed.

Cancellation of registration—Section 74 of CGST Act—The present petition has been filed against the order of the appellate authority arising from proceedings under Section 74 of the CGST Act. Since, no Tribunal has yet been constituted, the present petition is being entertained at this stage. Submission of learned counsel for the petitioner is that at the time of purchase of goods/stocks, the registration of the selling dealer was valid. The fact that such registration may have been cancelled, a few months thereafter would not have any impact on the genuineness of the transaction. Learned Standing Counsel has accepted notice on behalf of State-respondents. He prays for and is granted four weeks' time to file counter affidavit. Petitioner shall have two weeks thereafter to file rejoinder affidavit. Held that— subject to the petitioner depositing 20% of the amount of tax in dispute, the balance recovery, shall remain stayed.
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