Eco Cement India Ltd. Vs State of U.P. And 3 Others (Allahabad High Court)
The Allahabad High Court addressed a writ petition filed by Eco Cement India Ltd., a company engaged in the manufacture and sale of cement, iron, and steel. The petition challenged two orders: a GST order dated October 20, 2022, and an appellate order dated June 6, 2023.
Factual Background
The case originated from an inspection of the company’s business premises on January 9, 2019. Based on this survey, the authorities initiated proceedings against Eco Cement India Ltd. under Section 74 of the GST Act, alleging tax evasion. The company’s counsel argued that the initial proceedings under Section 130 and 122 of the GST Act, which had been started on the same premise, were previously dropped.
The company contended that the authorities initiated the new proceedings based on a flawed premise. They alleged that the authorities had arbitrarily noted stock without proper physical weighment. The proceedings were based on six grounds. Following the initial order, the company filed an appeal, which was partially allowed, but only one of the original six grounds was maintained against them. This remaining ground was the allegation of suppressed purchases and sales based on excess electricity consumption.
