M/S Eco Cement INDIA LTD. vs. State Of U.P. And 3 Others
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HIGH COURT OF JUDICATURE AT ALLAHABAD WRIT TAX No. - 1070 of 2023 Court No. - 7 HON'BLE PIYUSH AGRAWAL, J. Rejoinder affidavit filed today is taken on record. Heard Shri Aloke Kumar, learned counsel for the petitioner and Shri Ravi Shankar Pandey, learned ACSC for the State - respondents. The instant writ petition has been filed against the impugned order dated 20.10.2022 passed by the respondent no. 3 as well as the impugned order dated 06.06.2023 passed by the respondent no.
Learned counsel for the petitioner submits that the petitioner is a Public Limited Company and duly registered under the GST and engaged in the business of manufacture of cement and purchase & sale of iron and steel. On 09.01.2019, an inspection was carried out at the business premises of the petitioner. On the basis of the survey, proceedings under section 130 read with section 122 of GST Act were initiated against the petitioner, which were ultimately dropped/quashed in favour of the petitioner. Thereafter, on the said premise, proceedings under section 74 of the GST Act were initiated against the petitioner. He further submits that without making physical weighment, stock was noted in an arbitrary manner and therefore, the proceedings under section 74 of the Act cannot be initiated. He further submits that the proceedings were initiated on six grounds. Thereafter, the respondent no. 3 passed the impugned order dated 20.10.2022, against which the petitioner preferred an appeal, which was partly allowed vide impugned order dated 06.06.2023. Versus Counsel for Petitioner(s) : Aloke Kumar Counsel for Respondent(s) : C.S.C. M/S Eco Cement India Ltd. .....Petitioner(s) State Of U.P. And 3 Others .....Respondent(s)
He further submits that only adverse inference against the petitioner has been drawn on the basis of excess consumption of electricity. He further submits that various submission and evidence were filed, but the same were not considered by the Proper Officer and even, by the appellate authority. He further submits that once the material was brought on record, it was incumbent upon the authority to rebut the same. Per contra, learned ACSC supports the impugned orders and submits that various materials were found at the time of survey in the business premises of the petitioner and therefore, the proceedings have rightly been initiated. After hearing learned counsel for the parties, the Court has perused the record. There were six allegations made against the petitioner and in appeal, out of the six allegations, the appeal was partly allowed only on the basis of one ground with regard to consumption of electricity, an adverse view has been taken. The record shows that specific pleadings were made exempting the consumption of electricity, but the same have not been considered by the authority below. The consumption of electricity alone cannot be a ground for determining the suppressed purchase and sale. For determining the consumption of electricity, various factors have to be taken into consideration. The consumption of electricity depends upon the load, consumption, crushing or manufacturing, to which the authorities have not segregated the same. In the writ petition, specific pleading was made in paragraph nos. 42 & 43, which has not been rebutted in the counter affidavit filed by the State. In view of the aforesaid facts & circumstances of the case, the impugned orders cannot be sustained in the eyes of law. The matter requires reconsideration. For the said purpose, the impugned orders passed by the authorities below are are modified. The writ petition stands disposed of. The matter is remanded back to the Assessing Authority only to consider the point with regard to electricity consumption, preferably, within a period of three months from the date of production of a certified copy of the order. The parties are at liberty to adduce evidence in support of their claim. September 9, 2025 Amit Mishra (Piyush Agrawal,J.) AMIT KUMAR MISHRA High Court of Judicature at Allahabad AMIT KUMAR MISHRA High Court of Judicature at Allahabad
Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.