S.A. Iron & Alloys Pvt. Ltd. Vs State of U.P. and 4 others (Allahabad High Court)
The Allahabad High Court considered a writ petition challenging two orders issued by the authorities: an order dated 10 June 2022 passed by respondent no. 4 and an appellate order dated 24 February 2023 passed by respondent no. 5. The petitioner, a private limited company registered under GST and engaged in the business of sponge iron and MS ingots, stated that its business premises were surveyed on 1 December 2018. During the survey, the authorities allegedly recorded stock figures by eye estimation without actual weighment or physical accounting of raw materials and finished goods. On the basis of that survey, the department issued an order dated 20 June 2020 imposing penalty under Section 130(3) read with Section 122 of the GST Act. The petitioner filed an appeal, and the first appellate authority quashed the tax, penalty, and fine on 30 January 2023.
More than three years after the survey, proceedings under Section 74 of the GST Act were initiated through a show cause notice dated 7 June 2022. The petitioner submitted a detailed reply along with supporting material, but respondent no. 4 passed an order on 10 June 2022 imposing tax, penalty, and interest. The petitioner appealed, but the appellate authority partly allowed the appeal on 24 February 2023 instead of granting full relief.
