Mishra Agencies Vs State of U.P. (Allahabad High Court)
The Allahabad High Court allowed a writ petition challenging a GST recovery order dated 25.04.2024 passed under Section 73 of the GST Act, 2017, and the subsequent appellate order dated 18.02.2025 which dismissed the appeal as time-barred.
The petitioner contended that the recovery order was passed without granting any opportunity of hearing, rendering it ex parte and violative of principles of natural justice. It was argued that although the appellate authority lacked statutory power to condone delay, the foundational order itself was unsustainable as the petitioner had been denied an opportunity to submit a reply at the inception stage.
Upon examining the record, the Court found that the issue was squarely covered by an earlier decision of a coordinate Bench, where it was held that even if an appeal is dismissed as barred by limitation due to statutory restrictions, an ex parte original order passed without application of mind can still be examined in writ jurisdiction. The Court reiterated that administrative or quasi-judicial orders having civil consequences must disclose reasons and reflect application of mind, failing which they violate Article 14 of the Constitution.
The Court observed that the impugned recovery order did not satisfy these requirements and was passed without proper consideration or reasoning. Since the appellate authority had dismissed the appeal solely on limitation and not on merits, the doctrine of merger was held inapplicable, leaving the original order open to judicial review.
