APL Apollo Tubes Limited Vs Commissioner (Allahabad High Court)
Allahabad High Court has dismissed a writ petition filed by APL Apollo Tubes Limited challenging a Goods and Services Tax (GST) assessment order, directing the company to pursue the available statutory appellate remedy. The court, in its judgment dated February 5, 2025, emphasized that extraordinary jurisdiction under Article 226 of the Constitution should only be exercised in exceptional circumstances, which were not demonstrated by the petitioner in this case.
The dispute originated from discrepancies identified during the scrutiny of APL Apollo Tubes’ GST returns for the financial year 2017-18. On April 19, 2023, the Joint Commissioner, Corporate Circle – II, State Tax, Ghaziabad, issued a notice under Section 61 of the Uttar Pradesh Goods and Services Tax Act, 2017. The company’s initial response on May 25, 2023, was deemed unsatisfactory, leading to a notice under Section 73 of the Act. This notice focused on two primary issues: a difference in duty credit scrip reflected in GSTR-1 and GSTR-3B, and an amount of Rs. 77,88,28,755.17/- reported in Column_5O of GSTR-9C, pertaining to unlisted turnover adjustments.
While the company’s response regarding the duty credit scrip was accepted, the explanation for the turnover adjustments in Column_5O of GSTR-9C was not. The authorities noted that claims based on high sea sales and high sea purchases were not reflected in the company’s monthly or annual returns. Consequently, a notice under Section 74 of the Act was issued. Despite a response and an opportunity for a hearing, the petitioner’s clarifications were not accepted, leading to the impugned order dated February 5, 2025. This order identified the Rs. 77,88,28,755.17/- as evaded turnover and mandated the payment of tax, penalty, and interest.
