M/S Ramkrishna Garg And Suppliers vs. State Of U.P. And 2 Others
Original PDF →Facts
The petitioner, M/s Ramkrishna Garg And Suppliers, holds a lease for mining from March 3, 2021, to March 2, 2031. The petitioner failed to pay monthly lease amounts from January 2022 to June 2023. The petitioner's GST registration was cancelled on July 20, 2021, which they claim prevented them from depositing royalty. The GST registration was restored on July 26, 2022. Despite restoration, the petitioner was unable to conduct mining operations as the One Time Password (OTP) for issuing e-Transit Pass (eMM11) was not being granted, preventing them from earning revenue to pay the outstanding lease amounts. The Court had previously ordered the State to take instructions on the petitioner's request for installment payments.
Held
The Court acknowledged the petitioner's inability to conduct mining operations due to the cancellation and subsequent restoration of their GST registration. While the State contended there was no provision for issuing OTP without full payment, the Court found it appropriate to grant relief considering the circumstances. The Court directed that if the petitioner deposits Rs. 30 lakhs within one month, the OTP for eMM11 generation will be made available. The remaining amount, along with any accrued charges, is to be paid by the petitioner in three equal monthly installments thereafter. The Court cautioned that failure to deposit installments within the stipulated period would allow the respondents to re-initiate recovery proceedings. The issue of whether the State was legally obligated to issue OTP without full payment was implicitly addressed by the Court's conditional direction for relief, rather than a definitive ruling on the statutory provision.
Key Issues
1. Whether the State is obligated to issue the OTP for eMM11 to the petitioner when outstanding lease amounts are due, considering the petitioner's inability to conduct mining due to prior GST registration cancellation and subsequent restoration. The petitioner argued that the inability to conduct mining was directly linked to the cancellation and subsequent restoration of their GST registration. They contended that if the State provided relaxation, similar to past COVID-19 pandemic measures, they could deposit the due amounts in installments. Specifically, they proposed depositing one-third of the amount as the first installment to facilitate the issuance of eMM11, enabling them to earn revenue for further payments. The respondent State argued that there was no provision for granting the OTP without the deposit of the entire amount due. They did not present any further arguments or rely on specific provisions or precedents.
Sections Cited
None explicitly discussed or named in the judgment text provided.
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Cause title — parties, addresses and appearances
2023, we had passed the following order:- "Learned Standing Counsel states that even if the State is ready to take the amount due from the petitioner in instalments, the State shall not be able to issue the OTP for the removal of the minerals i.e. it shall not be able to provide the EMM-11. Learned counsel for the petitioner, however, relying upon the Government Order dated 1st May, 2021 has stated that in the past the Government had because of the COVID-19 pandemic permitted
certain relaxations and he submits that if relaxation would be given, the petitioner would be able to deposit the amount, which was due from him in instalments. He further submits that if the EMM-11 is issued to him after the depositing the 1/3 amount as the first instalment, then he shall be able to do some business which would facilitate him in earning money enough to pay off the money due from him. Learned Standing Counsel may take instructions in the matter. Place this case on 29th November, 2021 as fresh." Learned Standing counsel states that there was no provision for the granting of the OTP without depositing of the entire amount which was due. However, considering the fact that the petitioner had not been able to do the mining work because of the cancellation of the GST registration, which has now been restored, we consider it appropriate that if the petitioner deposits Rs. 30 lakhs within a period of one month then the OTP for the generation of the eMM11 shall be made available to the petitioner. The remaining amount along with the all the amounts which might have accrued shall be paid by the petitioner in the next three equal monthly installments. In case the petitioner defaults in depositing the instalments within the stipulated period, it will be open for the respondents to re- initiate the recovery proceedings against the petitioner. With the aforesaid observations/directions, the writ petition stands disposed of. Order Date :- 29.11.2023 vkj SIDDHARTHA VARMA High Court of Judicature at Allahabad
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.