Mi Industries India Private Limited Vs Union of India And 4 Others (Allahabad High Court)
The writ petition before the Allahabad High Court challenged an adjudication order dated 10 January 2024. The petitioner contended that the adjudication order suffered from jurisdictional error and violation of principles of natural justice. Specifically, it was argued that the show cause notice proposed a disputed demand of tax and penalty amounting to ₹1,71,79,347.92, whereas the adjudication order determined a substantially higher demand of ₹9,42,21,714.94, far exceeding the scope of the original notice. It was also alleged that the order had been passed without confronting the petitioner with adverse material and without affording a proper opportunity of hearing.
At an earlier stage, on 1 March 2024, the Court recorded these submissions and noted that the Standing Counsel for the Revenue sought time to obtain instructions, particularly on the issue that adverse material had not been confronted and the order appeared to have been passed in undue haste. The matter was directed to be listed afresh, and interim protection was granted to the petitioner by restraining coercive measures.
After exchange of pleadings, the Court examined the principal objections. It observed that where an adjudication order travels beyond the show cause notice or is passed in violation of natural justice, the existence of such jurisdictional error entitles the petitioner to invoke writ jurisdiction under Article 226, and relegation to the appellate remedy would serve no useful purpose.
