M/S New Gold Brick Field Thru. Proprietor Mushtaq Ahmad vs. State Of U.P. Thru. Secy. Deptt. Of Revenue Lko. And 2 Others
Facts
The petitioner, M/S New Gold Brick Field, through its proprietor Mushtaq Ahmad, filed a writ petition challenging recovery proceedings initiated for Goods and Services Tax dues. The disputed tax periods are 2018-2019, 2019-2020, and 2020-2021. The petitioner's counsel argued that the petitioner's license was revoked in 2023. The respondent was the State of U.P. through the Secretary, Department of Revenue, Lucknow, and two other respondents. The High Court heard the matter.
Held
The Court held that the revocation of the petitioner's license in 2023 does not provide a valid ground to interfere with recovery proceedings for GST dues pertaining to prior periods (2018-2019, 2019-2020, and 2020-2021). The reasoning was that the liability arose in earlier periods, and the subsequent revocation of the license does not extinguish or invalidate that pre-existing debt. The Court found no reason to interfere with the recovery proceedings based on the sole ground presented by the petitioner. The ratio decidendi is that a subsequent event, such as license revocation, cannot nullify a tax liability incurred during the period when the business was operational and subject to GST. The Court dismissed the writ petition.
Key Issues
1. Whether the revocation of the petitioner's license in 2023 impacts the recovery of GST dues for prior periods (2018-2019, 2019-2020, 2020-2021)? Petitioner's Contention: The petitioner argued that the revocation of their license in 2023 should somehow affect the recovery proceedings for earlier tax periods. The specific legal basis for this argument was not detailed in the judgment. Respondent's Contention: The respondent (State of U.P.) did not present any specific arguments recorded in the judgment. However, the Court's observation implies that the respondent likely contended that the license revocation is irrelevant to liabilities accrued in previous periods.
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2025:AHC-LKO:12444-DB Court No. - 2 Case :- WRIT - C No. - 1829 of 2025 Petitioner :- M/S New Gold Brick Field Thru. Proprietor Mushtaq Ahmad Respondent :- State Of U.P. Thru. Secy. Deptt. Of Revenue Lko. And 2 Others Counsel for Petitioner :- Paritosh Shukla,Iqbal Ahmed Ahmedullah Counsel for Respondent :- C.S.C. Hon'ble Rajan Roy,J. Hon'ble Om Prakash Shukla,J.
Heard.
The recovery proceedings which are impugned herein have been initiated for recovery of dues under the Goods and Services Tax, 2017 for the period 2018-2019, 2019-2020 and 2020-2021. The contention of the petitioner's Counsel is that the petitioner has got his license revoked in 2023, however, we fail to understand as to how only on this ground, the recovery can be interfered if the liability pertains to a prior period.
In view of the above, we see no reason to interfere in the matter, the writ petition is dismissed. (Om Prakash Shukla, J.) (Rajan Roy, J.) Order Date :- 3.3.2025 -Piyush- PIYUSH YADAV High Court of Judicature at Allahabad, Lucknow Bench
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
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.