Tru Sound Pvt Ltd Vs State of Uttar Pradesh And 2 Others (Allahabad High Court)
In the case of Tru Sound Pvt Ltd Vs State of Uttar Pradesh & Others, the Allahabad High Court examined writ petitions challenging impugned orders passed by the Deputy Commissioner, SIB, Noida, and the Additional Commissioner (Appeal-I), Noida, under the UP GST Act. The petitioner’s business premises were surveyed on 28.01.2020, during which alleged excess stock was identified without a Panchnama being drawn. Subsequent notices under Sections 130 read with 122 of the UP GST Act were issued, and the petitioner submitted replies contesting the findings. Dissatisfied with the responses, the authorities levied tax and penalties through the impugned orders, which were upheld on appeal. The petitioner argued that the proceedings were incorrectly initiated under Sections 130/122, whereas Sections 73/74, which govern regular assessments, should have applied. The High Court noted that the issue was squarely covered by its earlier decision in M/s Vijay Trading Company Vs. Additional Commissioner, affirmed by the Supreme Court in Additional Commissioner Vs. Vijay Trading Company. Considering the binding precedent, the Court held that the impugned orders were unsustainable in law, quashed the tax and penalty levied, and directed the concerned authority to refund any amounts deposited by the petitioner along with 4% interest per annum from the date of deposit until the refund. The writ petition was allowed, emphasizing that adherence to the correct procedural provisions under the GST Act is mandatory and that irregular initiation of proceedings cannot be sustained even if tax collection has already occurred.
