Bp Oil Mills Limited Vs Additional Commissioner Grade-2 And Another (Allahabad High Court)
The Allahabad High Court heard a batch of writ petitions involving a common controversy and, with the consent of parties, decided them through a consolidated judgment, treating one writ petition as the lead case. The petitioner challenged two orders: one dated 19 September 2023 passed under Section 74 of the GST Act for the period February–March 2023, and another dated 9 September 2024 passed by the appellate authority dismissing the petitioner’s appeal.
The petitioner is a registered company engaged in the manufacture and wholesale trading of mustard oil and mustard oil cake. In the course of business, it purchased mustard seeds from a GST-registered supplier located in Rajasthan. Each consignment was supported by five tax invoices, e-way bills, transport bilties, KUMS documents from Alwar, pre-arrival slips and Pravesh Parchi from KUMS Agra, and Dharam Kanta measurement slips. These transactions were reflected in the supplier’s ledger and the petitioner’s books of account. Payments were made through banking channels via RTGS.
A notice under Section 74 of the Act was issued to the petitioner on 27 August 2023 in Form DRC-01A, alleging that the purchases were made from a bogus and non-existent firm and proposing levy of IGST and penalty. Despite the petitioner submitting a detailed reply with supporting documents, the demand was confirmed. The petitioner’s appeal was also dismissed, leading to the present writ petitions.
