M/S Sunil Cement Store vs. Union Of INDIA And 3 Others

Held

The Court held that if the petitioner deposits the bank guarantee of the required amount within three weeks from the date of the order, the proceedings initiated under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017, shall stand concluded. This decision is based on the provisions of Section 129(5) of the Act and the precedent set by this Court in M/s Skipper Limited Vs. Union of India and 3 others. The Court clarified that failure to deposit the bank guarantee within the stipulated period would automatically recall the order, allowing the authorities to proceed as per law. The writ petition was disposed of accordingly.

Facts

The petitioner, M/s Sunil Cement Store, is facing proceedings under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017, initiated by the Assistant Commissioner, State Tax, Mobile Squad Unit, Ballia. A show cause notice dated March 20, 2018, was issued, requiring the petitioner to deposit a bank guarantee equivalent to the amount stipulated therein. The petitioner's counsel undertook to deposit the bank guarantee within three weeks from the date of the order.

Key Issues

1. Whether the proceedings under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017, can be concluded upon the deposit of a bank guarantee as stipulated in the show cause notice? The petitioner argued that upon depositing the bank guarantee within the stipulated time, the proceedings would stand concluded, referencing Section 129(5) of the Act and a previous judgment of this Court in Writ Tax No. 344 of 2018 (M/s Skipper Limited Vs. Union of India and 3 others). The respondent's arguments were not explicitly recorded in the judgment.