The controversy in the present case centers around the non availability of the documents of sale and purchase in respect of the goods that were found stored on the business premises of the petitioner and resultantly have been held to be unaccounted goods/ articles inviting actions under Section 35 (1) of CGST Act
Section 35 of the CGST Act, 2017— Accounts and other records--- The point of dispute is around non availability of the documents of sale and purchase in respect of the goods that were found stored on the business premises and have been held to be unaccounted goods/ articles inviting actions under Section 35 (1) of the Act, 2017. The petitioner submitted that it was transitional period from old Act to the new Act and under the new Act every exercise in respect of the taxes, had to be done online, all the documents in question were lying in the Head Office of the company. Had the respondent verified the fact from the Head Office, that petitioner would not have been saddled with the liability under Section 35(1).
Held that:- The Hon’ble High Court directed the petitioner to produce all the records bearing signatures of the designated authority before the respondent within 10 days for due verification and report thereof is obtained. If the requisite documents are produced, the same will be examined and verified by the competent authority and report duly prepared in respect thereof within a week of submission of records by the petitioner, shall be submitted to this Court by way of supplementary counter affidavit by the next date fixed on 09.11.2020.