Case Law Details
Ennbee Living LLP Vs State of U.P. And 2 Other (Allahabad High Court)
The Allahabad High Court heard a petition concerning difficulties faced by taxpayers in filing appeals under the U.P. GST Act, 2017 and the CGST Act, 2017 due to the procedure involving temporary IDs and passwords. During the hearing, the Court permitted the petitioner to implead GSTN and the Additional Commissioner (Appeal), Auraiya, as additional respondents.
The petitioner argued that taxpayers often face practical problems when attempting to file appeals against orders involving seizure of goods and the imposition of penalties. In such situations, temporary IDs and passwords are frequently generated for the person in charge of the vehicle, usually the driver. However, the consignor or consignee of the goods, who may not be present at the time of detention or penalty proceedings, may not have access to these credentials. As a result, they encounter difficulties in filing appeals against such orders.
Due to these constraints, affected parties often approach the High Court seeking directions either for the generation of a temporary ID and password or permission to file appeals through an offline mode. The Court observed that this situation leads to unnecessary expenditure of time, money, and effort.
The Court emphasized that access to justice should not be denied to any person who claims to be aggrieved by an order passed under the relevant GST laws. It further noted that the right of a person to file an appeal should not be questioned at the stage of instituting the appeal. Instead, such questions regarding locus or entitlement to file an appeal must be examined by the appellate authority through a quasi-judicial order. The Court stated that procedural mechanisms for filing appeals should not obstruct or interfere with this quasi-judicial power by preventing genuinely aggrieved persons from filing appeals.
The Court also examined the existing procedure for generating temporary IDs. Under the current system, an aggrieved person must first approach the officer who issued the order to request the creation of a temporary ID and password. The Court noted that this process can cause delays and may also create opportunities for malpractice, especially considering the strict timelines prescribed for filing appeals.
In light of these concerns, the Court directed counsel for GSTN to obtain written instructions regarding possible measures to address the issue. Specifically, the Court asked GSTN to inform it about the feasibility of introducing a mechanism for the automatic generation of temporary IDs and passwords. Such a system, according to the Court’s suggestion, could allow an aggrieved person to obtain credentials within a short timeframe, such as 10 to 15 minutes, thereby enabling them to file appeals online without delay.
Counsel for GSTN sought two weeks’ time to obtain instructions. In the meantime, the Court directed that the petitioner’s right to file an appeal should not be affected. Accordingly, the Mobile Squad office of the Assistant Commissioner, Sector-1, Auraiya, was directed to generate a temporary ID and password within one week to enable the petitioner to file an appeal against the order dated 29 March 2025 and communicate the credentials through email.
Alternatively, the Court permitted the petitioner to file the appeal through physical mode within two weeks. The matter was directed to be listed again on 13 March 2026.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. On oral prayer, learned counsel for the petitioner is permitted to implead the GSTN as also Additional Commissioner, Appeal, Auraiya (U.P.) as party respondent no.4 & 5 during course of the day.
2. Heard Ms. Pooja Talwar, learned counsel for the petitioner, Sri Gopal Verma, learned counsel for the GSTN and learned Standing Counsel for the State-respondent.
3. Upon hearing, it does appeal to reason that the access to justice may not be denied to any person, to file an appeal against any order passed under the U.P. G.S.T. Act, 2017 or the C.G.S.T. Act, 2017, who may claim to be a person aggrieved by such order.
4. At present, especially in cases involving seizure of goods and levy of penalty thereon, often temporary ID and password are created and made available to the person-in-charge of the vehicle i.e. the driver. The consignor or consignee of the goods who may not be available with the goods at the time of their detention or at the time of imposition of penalty often face difficulty in filing appeals against such orders.
5. For varied reasons, they approach this Court seeking a direction upon the authorities to either generate a temporary ID and password to enable such petitioners to file appeals or in the alternative, to allow them to file appeals through offline mode.
6. Prima facie, it appears to be a waste of time, money and effort. Access to justice cannot be held hostage to technology that the revenue authorities have adopted to stream line their own processes and procedures. Again, prima facie, any person claiming to be a person aggrieved against an order may not be questioned at the stage of instituting an appeal as to his locus or right to file appeal. That issue is to be examined by the appeal authority by means of a quasi-judicial order that may be passed or any objection raised in that regard. That quasi-judicial power may not be interjected or obstructed by providing a procedure for filing appeals as may disable a person who may be genuinely aggrieved by an order, to file such appeal.
7. At present, a process is available for generation of temporary ID. However, it requires the person aggrieved to first approach the officer who may have passed the order to generate a temporary ID and password. Besides, the delay that may arise on following such process, we also see room may exist or arise, for malpractices to grow if such procedure is followed keeping in mind rigid time lines to file appeals.
8. Therefore, Sri Gopal Verma, learned counsel for GSTN may obtain written instructions from the GSTN as to the measures that it may adopt to resolve the above difficulty being faced by taxpayers such that any person aggrieved by any order may be enabled to file an appeal through online mode. In that regard, the GSTN may inform the Court about feasibility of providing a mechanism for auto-generation of temporary ID and password, as may allow such person aggrieved to file an appeal through online mode within predefined-time such as 10 to 15 minutes from the time such temporary ID and password being generated.
9. Sri Gopal Verma, learned counsel prays for two weeks time. In the meanwhile, filing of appeal by the present petitioner may not be delayed. Accordingly, respondent no.3-Mobile Squad, Office of the Assistant Commissioner, Jurisdiction: Sector-1, Auraiya, Uttar Pradesh shall generate temporary ID and password enabling the petitioner to file appeal against the order dated 29.03.2025 within a period of one week and communicate the same to the petitioner through e-mail (living18@gmail.com). Alternatively, we allow the petitioner to file appeal through physical mode, within two weeks.
10. Put up as fresh on 13.03.2026.
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