M/S.Wedges Trading LLP vs. The Deputy Assistant Commissioner 1 - Andhra Pradesh High Court, 15 July 2024

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) TUESDAY, THE SIXTEENTH DAY OF JULY TWO THOUSAND AND TWENTY FOUR 2^ PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RM&H AND THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 8127 OF 2024 Between: M/s.Wedges Trading LLP, D.No.3/1-108, 2'^'^ Line, Rajendranagar, Behind Hotel Mezbaan, Guntur - 522 006. State of Andhra Pradesh. Rep. by its Managing Partner Mr.Abdul Mahamood Shaik ...PETITIONER AND 1. The Deputy Assistant Commissioner -I, Lalapet Circle, Guntur-I Division, Guntur. 2. The Assistant Commissioner (Central Tax), GST Bhavan, Guntur. 3. Joint Commissioner (ST), Guntur Division, Guntur. 4. The State of Andhra Pradesh, Rep. by its Principal Secretary, Revenue (CT) Department, A.P. Secretariat, Amaravati. 5. The Union of India, Rep. by its Secretary to Government Finance Department, New Delhi. ...RESPONDENTS. Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue Wirt of Mandamus or any other appropriate Writ or Order or Direction declaring the action of the 1®' Respondent in passing the Summary of the Order in Form GST DRC-07, dated 19.04.2023, uploaded on 20.04.2023, under Section 74 of the GST Act,2017 read with under Rules 100 (1), 100 (2), 100 (3), and 142 (5) of GST Rules,2017 levying Penalty of Rs.5,31,03,692/- (IGST Rs. 13,64,076/- + COST Rs.2,58,69,808/- + SGST Rs.2,58,69,808/-) for the tax period from Aprir2022 to September 2022 without considering the objections, without signature of the Officer concerned, as arbitrary, contrary to the Provisions of the IGST, CGST and SGST Acts 2017, bias, perverse, without jurisdiction, not valid in the eye of law and also the same is in violation of Principles of Natural Justice and Rule of law and consequently set aside the Summary of the Order passed by the 1 Respondent dated 19.04.2023, uploaded on 20.04.2023 in Form GST DRC- 07 as null and void. lA NO: 2 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of the Summary of the Order, dated 19.04.2023 uploaded on 20.04.2023, for the tax period Aprir2022 to September 2022, under the provisions of the IGST Act, CGST Act, APGST Act 2017, pending disposal of the above Writ Petition, as otherwise, the Petitioner will be put to severe loss and hardship. Counsel for the Petitioner: SRI SHAIK JEELANI BASHA Counsel for the Respondent Nos.1,3 & 4: Sri D. NAGARAJA KUMARI, Ld.GP FOR COMMERCIAL TAX Counsel for the Respondent No.2: SRI SHANTHI CHANDRA, SC FOR C.B.I.C Counsel for the Respondent No.5: SRI B. NARASIMHA SARMA, ADDL. SOLICITOR GENERAL OF INDIA

The Court made the following: ORDER

APHC010349822023 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Juri iction) [3488] TUE AY, THE SIXTEENTH DAY OF JULY TWO THOUSAND AND TWENTY FOUR PRESENT THE HON’BLE SRI JUSTICE R.RAGHUNANDAN RAO & THE HON’BLE SRI JUSTICE HARINATH.N WRIT PETITION No.8127 OF 2024 Between: M/s. Wedges Trading LLP. ...PETITIONER AND The Deputy Assistant Commissioner-I, Guntur and 4 others Counsel for the Petitioner: Sri Shaik Jeelani Basha ...RESPONDENTS Counsel for the Respondents: 1. Sri D.Nagaraja Kumari

Ld. G.P. for Commercial Tax The Court made the following order:

Heard the learned counsel for the petitioner, the learned Government \ Pleader for Commercial Tax appearing for respondent Nos. 1, 3 and 4 and the learned Senior Standing counsel for C.B.I.C. for Respondent No.2. 2. The petitioner has filed the present writ petition challenging the passing of the summary of the order dated 19.04.2023 in Form GST

-2- W.P. No.8127 of 2024 RRR,J & HN, J DRC-07 under Section 74 of the G.S.T. Act, 2017 levying penalty of I.G.S.T., C.G.S.T. and S.G.S.T. for the tax period from April 2022 to September 2022. 3. The petitioner has raised various grounds challenging in the writ petition. One of the grounds raised by the petitioner was that the said order suffers from a fatal defect of not being signed by the authority who passed the order. He would submit that not being signed in the assessment order is non-est in the eyes of the law. He relies on the judgment of the Division Bench of this Court in W.P. No.5238 of 2024, dated 19.03.2024. 4. In the present case, it is an admitted fact that the said order has not been signed by the authority, who passed the order. In such circumstances, following the judgment of the Division Bench of this Court in W.P. No.5238 of 2024, dated 19.03.2024, this writ petition is allowed setting aside the order dated 19.04.2024 and leaving it open to the respondent authorities to pass orders in accordance with law. No costs.

Miscellaneous petitions, if any, pending in this writ petition shall stand closed. SHA1K MOHD RAFl assistant registrar / //// Action officer To,

The Deputy Assistant Commissioner -I, Lalapet Circle, Guntur-I Division, Guntur.

The Assistant Commissioner (Central Tax), GST Bhavan, Guntur.

Joint Commissioner (ST), Guntur Division, Guntur.

The Principal Secretary, Revenue (CT) Department, State of Andhra Pradesh, A.P. Secretariat, Amaravati.

The Secretary to Government,Finance Department, Union of India, New Delhi

One CC to Sri Shaik Jeelani Basha, Advocate [OPUC]

One CC to Sri Shanthi Chandra, SC for C.B.I.C[OPUC]

One CC to Sri B. Narasimha Sarma, Addl. Solicitor General of India, High Court of A.P.[OPUC]

Two CCs to GP for Commercial Tax, High Court of Andhra Pradesh. [OUT]

10.

Three CD Copies. ssb

HIGH COURT DATED:16/07/2024 of O ORDER 13 AUG 20?it Current Section mllf ■ 3: co/j X * WP.No.8127 of 2024 DISPOSING OF THE W.P. WITHOUT COSTS