Passed Orders In Favour Of Assessee On Several Occasions Due To Failure Of UP GST Department To Provide Relevant Documents On Time: Allahabad HC

The Allahabad High Court cautioned the authorities under Uttar Pradesh Goods and Service Tax Act, 2017 that on several occasions the Court has passed orders in favour of the assessee as the department has not able to defend its case by timely providing relevant documents. 

The Court observed thus while noting that it is the duty of the authorities to ascertain whether the double movement of the goods has taken place actually.

The bench of Justice Shekhar B. Saraf observed, “…the Court on several occasions has passed orders in favour of the assessee as the department has not able to defend its case by timely providing relevant documents”

A Writ Petition under Article 226 of the Constitution of India was filed by M/S K Y Tobacco Works Pvt. Ltd. wherein the writ petitioner was aggrieved by the seizure order, the order imposing penalty under Section 129(3) of the Uttar Pradesh Goods and Service Tax Act, 2017 and the subsequent appellate order.

The Court noted that the primary document MOV-01 wherein the statement of the Driver is recorded has never been provided to the petitioner.

The Court further noted that the respondent authorities have not been able to indicate or prove any mens rea for evasion of tax.

The Court noted that it is the duty of the authorities to ascertain whether the double movement of the goods has taken place actually. According to the Court in the present case, no such burden of proof has been discharged by the respondents.

The Court observed, “a general caution is required to be given to the authorities in respect of the non-assistance and not providing the relevant documents to the counsel appearing on behalf of respondent authorities failing the department's lawyers to defend the case of the department effectively.”

The Court directed Commissioner, State Tax, U.P. to take note of the fact and ensure that in future proper assistance is provided to the counsel appearing on behalf of the State/respondents.

Accordingly, the Court quashed and set aside the impugned order.

Finally, the Court allowed the appeal.

Cause Title: M/S K Y Tobacco Works Pvt. Ltd. v. State of U.P. (Neutral Citation: 2024:AHC:86051)

Appearance:

Adv. Pooja Talwar

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