Bharat Mint And Allied Chemicals vs. State Of U.P. And Another
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Neutral Citation No. - 2025:AHC:89702-DB Chief Justice's Court Case :- WRIT TAX No. - 2532 of 2025 Petitioner :- Bharat Mint and Allied Chemicals Respondent :- State of U.P. and another Counsel for Petitioner :- Abhinav Mehrotra, Bhavna Mehrotra, Satya Vrata Mehrotra Counsel for Respondent :- C.S.C., Ankur Agarwal (S.C.) With Case :- WRIT TAX No. - 2533 of 2025 Petitioner :- Bharat Mint and Allied Chemicals Respondent :- State of U.P. and another Counsel for Petitioner :- Abhinav Mehrotra, Bhavna Mehrotra, Satya Vrata Mehrotra Counsel for Respondent :- C.S.C., Ankur Agarwal (S.C.) Hon'ble Arun Bhansali,Chief Justice Hon'ble Kshitij Shailendra,J.
These petitions have been filed aggrieved of the orders dated 24.01.2025 and 15.02.2025 passed by respondent No. 2 under Section 74 of the Goods and Services Tax Act, 2017 ('the Act') for the tax period 2018-19 and 2019-20. 2. Submissions have been made that earlier, notices were issued under Section 74 of the Act, which resulted in orders of adjudication dated 09.11.2021. The petitioners filed Writ Tax Nos. 1029 of 2021 and 1037 of 2021, which writ petitions came to be allowed by orders dated 04.03.2022. The impugned orders dated 09.11.2021 passed under Section 74 of the Act were quashed and liberty was granted to the respondents to pass a fresh order in accordance with law, after providing opportunity of hearing to the petitioner.
It appears that pursuant to the said direction, initially orders under Section 161 of the Act were passed cancelling the orders dated 09.11.2021 and the demand raised therein, whereafter fresh notices under Section 74 of the Act dated 27.05.2022 were issued.
The foundational fact alleged in the notice, pertains to the allegation regarding non-existence of North End Food Marketing Pvt. Ltd and the input tax credit availed by the petitioners, based on supplies made by the said company. The petitioner required supply of certain documents and filed detailed reply, inter alia, responding to the allegation pertaining to the said North End Food Marketing Pvt. Ltd. and that the said company was still active on portal, so question of non-existence cannot be raised.
The respondent, though pasted the entire response to the show cause notice in the impugned adjudication order, however, reiterated the allegation made in the show cause notice regarding the fact that the said company (North End Food Marketing Pvt. Ltd.) was not found transacting any business as a finding, without taking into consideration the response filed by the petitioner and confirmed the demand.
Learned counsel for the petitioners made submissions that the passing of the order, by ignoring reply, is ex facie illegal and against provisions of Section 74(6) of the Act and therefore, the orders impugned deserve to be set aside.
Learned Standing Counsel attempted to support the orders impugned, however, could not point out any consideration of the response filed by the petitioner except for the fact that the same was pasted in the adjudication orders.
Having considered the submissions made as well as the record of the case, it is apparent that despite the petitioner's detailed
response to the allegation pertaining to the North End Food, not a word has been taken into consideration and verbatim allegation as made in the show cause notice has been recorded as finding in the adjudication orders, which cannot be sustained.
Consequently, the petitions are allowed. The orders dated 24.01.2025 and 15.02.2025 are quashed and set aside. The matters are remanded back to the adjudicating authority, who is directed to provide opportunity of hearing to the petitioners and pass a fresh order after taking into consideration the response, as filed by the petitioner, in accordance with law. Order Date :- 26.5.2025 Mukesh Pal (Kshitij Shailendra, J) (Arun Bhansali, CJ) MUKESH PAL 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.