M/S Batra Brothers Private Limited Th Authorized Signatory Davinder Kumar Batra vs. Ut Of Ladakh Th The Commissioner State Taxes Dept And Others

Held

The Court did not pass a formal order on the merits of the case. Instead, the petition was disposed of based on the statement made by the learned counsel for the respondents. The respondents' counsel assured the Court that the appeal filed by the petitioner, along with the application for release of goods, would be considered and decided by the appellate authority on the scheduled date of May 22, 2025. Furthermore, it was submitted that if the matter could not be decided on that date due to unforeseen circumstances, the appeal and application would be finally disposed of within two weeks thereafter. The Court noted that if the matter is not decided as indicated, the petitioner is at liberty to move an appropriate application for restoration of this appeal for necessary orders.

Facts

The petitioner, M/s Batra Brothers Private Limited, is challenging an order dated July 13, 2022, which resulted in the detention of their vehicle and goods, and the imposition of a tax and penalty totaling Rs. 13,69,748/-. The petitioner contends that this order was passed without a proper hearing, violating principles of natural justice, and was without jurisdiction. The petitioner filed a statutory appeal on July 26, 2022, depositing 25% of the penalty as pre-deposit, and also filed an application for the release of the seized goods. Despite the passage of time, neither the appeal nor the application has been decided. The High Court had previously directed the disposal of the appeal on September 15, 2023. The respondents have not filed a formal response to the current petition.

Key Issues

1. Whether the order dated July 13, 2022, imposing tax and penalty of Rs. 13,69,748/- and detaining the petitioner's vehicle and goods, is illegal, without jurisdiction, and in violation of the principles of natural justice, as argued by the petitioner. The petitioner relies on the principles of natural justice and relevant provisions of the GST Act concerning proper hearing and jurisdiction. The respondents have not formally argued this point in the present proceedings, but their counsel indicated the appeal is listed for hearing. 2. Whether the appellate authority has failed to decide the statutory appeal filed by the petitioner on July 26, 2022, and the subsequent application for release of goods, despite previous directions from the High Court, thereby impairing the petitioner's rights and interests, as argued by the petitioner. The petitioner cites the High Court's previous order dated September 15, 2023. The respondents' counsel has assured that the appeal and application will be considered and decided on the upcoming date of hearing.