M/S Cawnpore Monochem Industries vs. State Of U.P. And 3 Others

By the impugned order dated 10.01.2025 passed under Section 107 of the U.P.G.S.T. Act the appeal of the petitioner against the order dated 21.10.2021 passed under Section 74(9) of the U.P.G.S.T. Act has been declined. According to the order passed by the authorities under Section 74(9) of the U.P.G.S.T. Act the input tax credit was falsely availed by making the transactions outside the account and failing to deposit the GST on the aforesaid transactions.

The appellate authority has rejected the appeal by the impugned order dated 10.01.2025 solely on the footing that the petitioner failed to produce any document in support of his case merely reiterating the grounds of appeal.

It has been contended by Sri Rahul Agarwal, learned counsel for the petitioner that the books of accounts which reconciled the offending transaction were duly produced before the appellate authority. However, due to some oversight they were neither considered nor referenced in the impugned order. The finding in the impugned order to that extent is perverse. Reliance has been placed on the affidavit filed by counsel for the assesee before the appellate authority which clearly asserts that the books of account were duly produced before the appellate authority during the appellate proceedings.

An affidavit has been filed by the counsel for the assessee who had appeared before the appellate authority asserts that the relevant documents which reconcile the account and offending transaction were duly produced the appellate authority. The accounts of which reliance was so to be placed before the appellate authority have been appended to this writ petition.

These facts have not been refuted by the learned Standing Counsel on the basis of instructions received.

It is evident that the appellate authority neglected to consider the aforesaid accounts due to some oversight.

In this wake the impugned order dated 10.01.2025 is vitiated due to non application of mind. The impugned order is liable to be set aside and is set aside.

The matter is remitted to the appellate authority with the following directions; i. The petitioner shall file all copies of the relevant documents on which reliance is sought to be placed as above before the appellate authority alongwith an affidavit and also produce the same at the time of hearing and before commencement of hearing. ii. The appellate authority shall duly record whether the records have been produced and signatures of the counsel shall be appended to the ordersheet in this regard. iii. The appointing authority shall thereafter decide the appeal on merits after considering the said documents.

The writ petition is allowed. Order Date :- 28.4.2025 Pravin PRAVIN VERMA High Court of Judicature at Allahabad