Opasil Pigments And Chemicals (P) Ltd Vs State of U.P. And 2 Others (Allahabad High Court)
The case of Opasil Pigments And Chemicals (P) Ltd. vs. State of U.P. And 2 Others centered on a dispute over the recall of a favorable appellate order under the Goods and Services Tax (GST) Act. The petitioner, Opasil Pigments, challenged an order passed by a tax authority that unilaterally recalled a previous appellate decision which had quashed a penalty imposed on the company. The Allahabad High Court ultimately ruled in favor of the petitioner, holding that the recall was illegal and violated the provisions of the GST Act.
Factual Background
The case originated when Opasil Pigments’ goods were seized, leading to the imposition of a penalty under Section 129(3) of the UP GST / CGST Act. The company challenged this penalty by filing an appeal under Section 107 of the Act. The appellate authority allowed the appeal on its merits on February 8, 2020, and the penalty was quashed.
However, the tax authorities later moved an application under Section 161 of the GST Act, seeking to recall the order. The basis for this application was that a Special Leave Petition (SLP) had been filed before the Supreme Court in a related matter. On this ground alone, the tax authority unilaterally recalled the favorable order previously granted to Opasil Pigments. The petitioner argued that this action amounted to a review of the order, which is not permissible under Section 161.
