Bindal Smelting Private Limited Vs Commissioner And 2 Others (Allahabad High Court)
The Allahabad High Court has issued an interim order restraining coercive recovery proceedings against Bindal Smelting Private Limited, finding a prima facie case of wrongful invocation of GST provisions. The dispute arose after the petitioner’s business premises were surveyed on March 14, 2022, where excess stock was allegedly found. Based on this finding, the authorities initiated proceedings under Section 130 of the GST Act, which deals with confiscation of goods, instead of the appropriate Section 74, which pertains to tax evasion without fraud. The petitioner challenged this action, and an appeal was partially allowed. The petitioner’s counsel referred to the precedent set in M/s Gopal Trading Company Vs. State of UP, a recent judgment by the same court that addressed similar misapplication of the law. Recognizing that the matter requires consideration, the court has granted the respondents six weeks to file a counter affidavit. In the interim, no coercive action shall be taken against the petitioner, provided they deposit 10% of the remaining tax liability within 15 days. The court’s decision provides temporary relief to the petitioner while the legal merits of the case are further examined.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
