The Assistant Commissioner State Tax, Mobile Wing, Chandigarh 2 vs. M/S Goyal Iron Traders And Another
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The petitioner, M/s Goyal Iron Traders, filed a writ petition challenging an order dated 16.06.2022 passed by the Deputy Commissioner State Tax (Appeals), Patiala Division. The petitioner sought the refund of an amount, as per the impugned order. The revenue, represented by the Assistant Commissioner State Tax, argued that the matter should be decided in light of a Supreme Court judgment in "The State of Punjab Vs. M/s Shiv Enterprises and others." This judgment had set aside a High Court order and remanded the matter to the appropriate authority for fresh consideration. The petitioner had also preferred a writ petition before the High Court, praying for the refund of the amount as per the impugned order dated 16.06.2022.
Held
The Court noted that the Supreme Court in "The State of Punjab Vs. M/s Shiv Enterprises and others" had set aside a High Court order and remanded the matter to the appropriate authority for fresh consideration. The High Court, in the present case, found that the order passed by the Deputy Commissioner State Tax (Appeals), Patiala Division, relied on the observations under the aforementioned Supreme Court judgment. Therefore, the Court decided to take a similar view. The Court directed the Deputy Commissioner State Tax (Appeals), Patiala Division, to independently examine the contentions raised by the writ petitioner, including the challenge to the invocation of Section 130 of the CGST Act. The petitioner was given the liberty to raise all its contentions. The Deputy Commissioner was directed to pass a detailed speaking order after examining all aspects and hearing the stakeholders within two months from the date of the order. The revenue had not presented any specific arguments against the petitioner's claim, other than relying on the Supreme Court judgment.
Key Issues
1. Whether the invocation of Section 130 of the CGST Act by the Deputy Commissioner State Tax was unwarranted and liable to be set aside, considering there was no attempt to evade payment of tax to the State, as argued by the petitioner, relying on the law laid down by the High Court in "M/s Shiv Enterprises Vs. State of Punjab and others" (CWP No. 18392 of 2021)? 2. Whether the amount paid by the petitioner should be refunded, subject to any appeal that may be preferred by the revenue, as contended by the petitioner? 3. Whether the matter should be remanded to the appropriate authority for fresh consideration in light of the Supreme Court's decision in "The State of Punjab Vs. M/s Shiv Enterprises and others" (Civil Appeal No. 359 of 2023), as argued by the revenue?
Sections Cited
Section 130
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ing order:- ns have been taken up together petitioners is in relation to or Deputy Commissioner State T by it was held as under:- s invocation of section 130 in d and is liable to be set aside
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024 (O&M) there is no attempt to evade Punjab and the law laid do Punjab and Haryana in CW 04.02.2022 titled as M/s Sh and others is followed. The a and the penalty order date Commissioner State Tax, Shambu is set aside and d Rs.5,21,694/- to the appellan Learned counsel appearing f dgment passed in CWP No.18392 /s Shiv Enterprises Vs. State of reinabove, has been set aside b der dated 16.01.2023 passed in “The State of Punjab Vs. M/s Sh The petitioner, on the other ha aring No.CWP-17400 of 2023 be refund of the amount in term 06.2022 passed by the Deputy C tiala Division. Learned counsel for the petiti ected ought to be refunded to h e appeal, if any, which may be pr der dated 16.06.2022. However,
-2- e the payment of tax to the State own by the Hon’ble High Court Mobile Wing Chandigarh-2 directed to refund the amount nt”. for the revenue submits that 2 of 2021 decided on 04.02.2022 f Punjab and others” relied up by the Hon’ble Apex Court in Civil Appeal No.359 of 2023 tit hiv Enterprises and others. and, had preferred a writ petit efore this Court, wherein he pray ms of the impugned order da Commissioner State Tax (Appea ioner submits that the amount im subject to what is to be done referred by the revenue against as noticed above, we find that G
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024 (O&M) ibunal is yet to be formed and th WP No.4202 of 2024 (supra). Taking note of the contentions r the parties and also taking into e Deputy Commissioner State Ta d that before we decide, it wou ssed by the Hon’ble Supreme Co ed as “The State of Punjab Vs. erein it has been held as under:- “6. In view of the above and without expressing anythin parties, more particularly, a writ petitioner), on the afore impugned judgment and ord extent of quashing and 14.09.2021, issued under S remand the matter to the app notice. It will be for the petitioner to file a reply to th period of four weeks from to authority to pass an appropr and on its own merits.
All the contentions/defenc respondent-original writ p
-3- herefore, the revenue is before us raised by both the learned coun o consideration the order passed Tax (Appeals), Patiala Division, uld be apposite to quote the or ourt in Civil Appeal No.359 of 20 M/s Shiv Enterprises and othe - d for the reasons stated above a ng on merits in favour of eit against respondent therein (origi esaid ground alone, we set aside der passed by the High Court to setting aside the notice da Section 130 of the CGST Act a propriate authority, who issued respondent-herein - original w he said show cause notice withi oday and thereafter the appropri riate order in accordance with l ces which may be available to petitioner are kept open to
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024 (O&M) considered by the appropriat and on its own merits.
The present appeal is par In the facts and circumstan order as to costs.” Keeping in view of the above urt and finding that the order pa ate Tax (Appeals), Patiala Divisi w laid down by this court in M njab and others”, which has be urt and the matter was remand d direct the Deputy Commissio vision to independently examine titioner-Satguru Steels, before titioners (hereinabove) to raise a allenge of invocation under Sect m the Deputy Commissioner Sta pass a detailed speaking order a aring the concerned stake holde m today.” e same order shall apply to the p e parties shall themselves appea eals), Patiala Division on 18.06.2
-4- te authority in accordance with l rtly allowed to the aforesaid exte nces of the case, there shall be observation of the Hon’ble Ap assed by the Deputy Commissio ion relies on the observations un M/s Shiv Enterprises Vs. State een set aside by the Hon’ble Ap ded back, we too take similar v oner State Tax (Appeals), Pati e the contentions raised by the w it. It would be open for the w all its contentions with regard to tion 130 in their case. It is expec ate Tax (Appeals), Patiala Divis after examining all the aspects a ers within a period of two mon present case. ar before the Deputy Commissio 2024. law ent. no pex oner nder e of pex view iala writ writ the cted sion and ths, oner TRIPTI SAINI 2024.05.16 12:29 I attest to the accuracy and integrity of this document
CWP-11240-20
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May 14, 2024 tripti
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-5- ordingly. tand disposed of. EV PRAKASH SHARMA) JUDGE SUDEEPTI SHARMA) JUDGE king No
TRIPTI SAINI 2024.05.16 12:29 I attest to the accuracy and integrity of this document
Reproduced from the public record of the Punjab and Haryana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.