M/S Arohi Enterprises, Through Its Secretary, Rajan vs. Union Of INDIA And 3 Others
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The petitioner, M/s Arohi Enterprises, a registered dealer under the GST Act, 2017, engaged in the sale and purchase of tobacco leaves, challenged a summary order (Form DRC-07) and a penalty order (Form GST MOV-09), both dated 02.07.2023, issued by Respondent No. 4. They also sought the release of a detained vehicle (GJ34T5669) and goods by Respondent No. 2. The petitioner stated they had deposited the requisite amount to file an appeal but the GST portal was not accepting it because proceedings were initiated against the vehicle's driver, not the registered buyer and supplier. A rectification application filed on 06.07.2023 was pending, preventing the petitioner from filing an appeal as the proceedings were not registered against them. The petitioner requested directions for the Appellate Authority to entertain their appeal and adjust the deposited amount.
Held
The Court disposed of the petition by permitting the petitioner to file an appeal within three weeks from the date of the order. The Appellate Authority was directed to consider the petitioner's claim on its merits, in accordance with the law, and to ignore the point of limitation. Recognizing the perishable nature of the goods, the Appellate Authority was instructed to decide the appeal promptly. Furthermore, if an application for interim relief was filed within ten days from the order date, it was to be considered expeditiously. The Court noted the fair submissions made by both parties in reaching this disposition. The specific issue of whether the proceedings were erroneously initiated against the driver was not definitively decided, but the focus shifted to facilitating the appellate process.
Key Issues
1. Whether the GST portal's inability to accept an appeal due to proceedings being initiated against the driver, despite the buyer and supplier being registered, warrants judicial intervention to allow the filing of an appeal. (Mixed question of law and fact, concerning procedural fairness and access to appellate remedies). Petitioner's Arguments: The petitioner argued that the proceedings were erroneously initiated against the driver, and since both the buyer and supplier are registered, the appeal should be entertained. They contended that the GST portal's technical inability, stemming from the incorrect initiation of proceedings, should not bar them from accessing their appellate remedy. They relied on the fact that a rectification application was pending and requested directions for the Appellate Authority to make arrangements to accept their appeal and consider the deposited amount. Revenue's Arguments: The revenue's counsel submitted that the amount deposited by the petitioner would be adjusted against the appeal filing requirement and that necessary arrangements would be made to entertain the appeal.
Sections Cited
CGST Act, 2017
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2023:AHC:150468-DB Chief Justice's Court Case :- WRIT TAX No. - 918 of 2023 Petitioner :- M/S Arohi Enterprises, Through Its Secretary, Rajan Respondent :- Union Of India And 3 Others Counsel for Petitioner :- Aditya Gupta,Harsh Vardhan Gupta Counsel for Respondent :- A.S.G.I.,C.S.C. Hon'ble Pritinker Diwaker,Chief Justice Hon'ble Ashutosh Srivastava,J. The writ petitioners, who are registered dealer under the GST Act, 2017 engaged in the business of sale and purchase of tabacco leaves have approached this Court assailing the summary order issued by the Respondent No. 4 under Form DRC-07 dated 02.07.2023 as also the penalty order dated 02.07.2023 under Form GST MOV-09. A further prayer to release the goods and vehicle bearing registration No. GJ34T5669 detained by the Respondent No. 2 has been prayed for. Counsel for the petitioner submits that the petitioner intends to file an appeal, for which requisite amount has already been deposited by him. He submits that the Portal is not accepting the appeal on behalf of the petitioner, as the proceedings have been erroneously initiated against the driver of the vehicle despite the buyer and the supplier both being duly registered under CGST Act, 2017. Though a rectification application dated 06.07.2023 has been filed and is stated to be pending till date the GST portal is not allowing the petitioner firm to file appeal before the Appellate Authority as the proceedings have not been registered against the petitioner. It has been further argued that direction be issued to the Appellate Authority to make some necessary arrangement and entertain the appeal and the amount deposited may also be considered against the said deposit. Shri Nimai Das, learned counsel for the revenue submits that the amount so deposited by the petitioner shall be adjusted against the amount required for filing the appeal and necessary direction and arrangement for entertaining the appeal would be made. In view of fair submission made by the parties, this petition is disposed of permitting the petitioner to file an appeal within a period of three weeks from today and in the eventuality of doing
so, the Appellate Authority shall consider the claim of the petitioner on the merits of the case in accordance with law ignoring the point of limitation. As the goods are perishable in nature, the Appellate Authority to take prompt steps to decide the appeal and in case any application is filed within a period of ten days from today seeking interim relief the same may also be considered expeditiously in accordance with law. Order Date :- 27.7.2023 SK (Ashutosh Srivastava,J.) (Pritinker Diwaker,CJ.) SANDEEP KUMAR 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.