Case Law Details
New India Traders Vs State Of U.P (Allahabad High Court)
Introduction: In a significant judgment, the Allahabad High Court, in the case of New India Traders Vs. State of U.P, has ruled in favor of the petitioner, emphasizing the necessity of providing an opportunity of hearing before taking an adverse view. The court, taking note of the absence of a GST Tribunal in Uttar Pradesh, addressed the issues raised in the writ petitions, with Writ Tax 527 of 2023 serving as the leading case. The case revolves around the quashing of a penalty order imposed by the Assistant Commissioner and the Additional Commissioner, Grade-2 (Appeal), both from Bareilly.
Detailed Analysis: The petitioner, a proprietorship concern, challenged the penalty order dated 04.08.2022, imposed by the Assistant Commissioner, Mobile Squad – 3, SGST, Bareilly. The dispute arose when goods in transit were intercepted, revealing a discrepancy in the weight mentioned in the e-way bill compared to the actual weight. The petitioner argued that the mistake was rectified before the goods were moved, and the correct documentation was presented to the authorities.
The court examined the record and found that the issuance of a show cause notice and the subsequent production of correct documents before the seizure order precluded adverse inferences. However, the Additional Commissioner, Grade-2 (Appeal), in dismissing the appeal, drew an adverse inference without affording the petitioner an opportunity to respond. The court, highlighting the violation of the principles of natural justice, quashed the penalty order.
The judgment underscored the importance of providing an opportunity for stakeholders to be heard before any adverse view is taken. The absence of such an opportunity in this case was deemed a clear violation of the principles of natural justice.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
