Agrawal Agro Centre Vs State of Chhattisgarh (Chhattisgarh High Court)
In a significant ruling, the Chhattisgarh High Court has quashed a suo motu Goods and Services Tax (GST) revision proceeding initiated against Agrawal Agro Centre, emphasizing that any administrative or quasi-judicial order must be supported by clear and cogent reasons. The court, in the case of Agrawal Agro Centre Vs State of Chhattisgarh, also highlighted a critical procedural flaw: the revisional authority lacked the legal competence to issue the order at the time it was passed.
The case originated when a vehicle belonging to Agrawal Agro Centre, a proprietorship firm registered under the Chhattisgarh Goods and Service Tax Act, 2017, was intercepted on May 22, 2019. The Assistant Commissioner, Raigarh, concluded that goods had been transported twice using the same e-way bill and invoice, leading to the imposition of tax and penalty.
Agrawal Agro Centre challenged this order by filing an appeal under Section 107 of the Act, which was subsequently allowed on May 30, 2019, providing relief to the firm. However, just two days later, on June 1, 2019, the Commissioner passed an impugned order under Section 108 of the Act, staying the Appellate Authority’s decision through a suo motu revision.
