M/S Sakshi Enterprises vs. State Of U.P. And Another

Held

The Court quashed the order dated April 19, 2023, passed by Respondent No. 2. The Court permitted the petitioner to approach Respondent No. 2 to obtain a fresh notice within 15 days. Upon receiving the fresh notice, the petitioner was directed to file a reply within the time stipulated by Respondent No. 2. The Court further directed that while deciding the matter, an opportunity of personal hearing be afforded to the petitioner. The Court explicitly stated that it was not expressing any opinion on the merits of the case. The amendment application seeking deletion of certain prayers was allowed.

Facts

The petitioner, M/s Sakshi Enterprises, filed a writ petition challenging an order dated April 19, 2023, passed by Respondent No. 2 (Assistant Commissioner, State Tax). This order directed the petitioner to deposit Rs. 63,12,126/-. The petitioner contended that they were not served with a show cause notice dated March 17, 2023, which fixed a liability of Rs. 62,69,406/- and was allegedly served on the GST portal. Consequently, the impugned order was passed ex-parte without the petitioner's knowledge. The petitioner's unit had closed on August 29, 2019, and this closure was intimated, leading to the cancellation of their registration.

Key Issues

1. Whether the order dated April 19, 2023, passed by Respondent No. 2 is liable to be quashed on the ground of non-service of the show cause notice dated March 17, 2023, thereby violating principles of natural justice? Petitioner's Arguments: The petitioner argued that they were not served with the show cause notice and were unaware of the proceedings, leading to an ex-parte order. They sought a fresh notice and an opportunity to submit a reply, considering the closure of their unit and intimation thereof. Respondent's Arguments: The respondents, represented by the learned Standing Counsel, had no objection to the proposition put forth by the petitioner.