M/S Jaiswal Iron Stores vs. State Of U.P. And 2 Others
Held
The Court held that the impugned order dated July 24, 2021, passed by the Assistant Commissioner, Commercial Tax, was unsustainable. Despite the State's claim of show cause notice service, the Court found that the order was passed in violation of essential principles of natural justice as it merely recorded the conclusion without discussing facts or providing reasons. Therefore, no useful purpose would be served by relegating the petitioner to the alternative remedy. The Court set aside the impugned order and remitted the matter back to the assessing authority to pass a fresh order in accordance with law within six months, after affording the petitioner due opportunity of hearing. The issue regarding actionable material was left open to be decided by the adjudicating authority in the fresh proceedings.
Facts
The petitioner, M/s Jaiswal Iron Stores, challenged an order dated July 24, 2021, passed by the Assistant Commissioner, Commercial Tax, Bhadohi, under Section 74 of the GST Act, 2017, for the tax period 2019-20. The petitioner argued that the order was passed without a show cause notice, was non-speaking, and lacked actionable material as the selling dealer was registered on the GST portal. The respondent State contended that the show cause notice was served and that the petitioner should pursue the alternative remedy. However, the State conceded that the impugned order did not record any reasons for its conclusion.
Key Issues
1. Whether the impugned order dated 24.7.2021, passed under Section 74 of the GST Act, 2017, is liable to be set aside for being non-speaking and passed without adequate reasons, thereby violating principles of natural justice? Petitioner's arguments: The petitioner contended that the adjudication order was passed without a prior show cause notice, was wholly non-speaking, and lacked actionable material because the selling dealer was registered on the GST portal. They argued that the bar of alternative remedy should not apply. Respondent's arguments: The State raised a preliminary objection regarding the alternative remedy. They asserted that a show cause notice had been served. Regarding the non-speaking nature of the order, they conceded that it did not record reasons. They argued that the issue of actionable material touched upon the merits and should be dealt with in adjudication.
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
Court No. - 3 Case :- WRIT TAX No. - 684 of 2021 Petitioner :- M/S Jaiswal Iron Stores Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Aloke Kumar Counsel for Respondent :- C.S.C. Hon'ble Naheed Ara Moonis,J. Hon'ble Saumitra Dayal Singh,J. Supplementary affidavit filed today, is taken on record. Heard Sri Aloke Kumar, learned counsel for the petitioner and Sri Apoorva Hajela, learned Standing Counsel for the State. Challenge has been raised to the order dated 24.7.2021 passed by the Assistant Commissioner, Commercial Tax, Sector-II, Bhadohi in exercise of power under Section 74 of the GST Act, 2017 for the tax period 2019-
Submission of learned counsel for the petitioner is three fold. First, it has been submitted that the aforesaid adjudication order has been passed without prior service of show cause notice. Second, it has been submitted that in any case, the said order is wholly non-speaking. Third, it has been submitted that in any case, there is no actionable material to proceed against the petitioner, inasmuch as it has been stated by means of supplementary affidavit, the selling dealer is duly registered on the GST Portal maintained by the reve
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