Facts of the Case

The petitioner, M/s Maha Laxmi Enterprises, challenged an ex-parte assessment order dated 20.01.2023 passed under Section 74 of the GST Act by the Deputy Commissioner, State Tax, Sector-8, Meerut, for the tax period 2019-2020. At the hearing, counsel for both sides agreed that the controversy in the present petition was squarely covered by an earlier order of a coordinate Bench of the same High Court dated 13.02.2023 in Writ-Tax No. 58 of 2023 (M/s Mohan Agencies vs. State of U.P. and Another).

Issues Involved

  1. Whether the ex-parte order dated 20.01.2023 passed under Section 74 of the GST Act for tax period 2019-2020 was sustainable.
  2. Whether the controversy stood covered by the earlier decision in M/s Mohan Agencies vs. State of U.P.

Petitioner's Arguments

  • The ex-parte order under Section 74 of the GST Act for the tax period 2019-2020 was liable to be set aside.
  • The controversy was identical to that already decided by the coordinate Bench in M/s Mohan Agencies vs. State of U.P. and Another (Writ-Tax No. 58 of 2023, decided 13.02.2023), and the same relief should follow.

Respondent's Arguments

  • Counsel for the revenue did not dispute that the controversy was squarely covered by the earlier decision in M/s Mohan Agencies, and did not oppose relief being granted on the same terms.

Court Order / Findings

  • Since both parties agreed that the present controversy was squarely covered by the earlier ruling in M/s Mohan Agencies vs. State of U.P. and Another, the Court allowed the present petition on the same terms as that decision.
  • The petition was disposed of without any separate, independent reasoning being recorded, consistent with the earlier precedent being applied wholesale.

Important Clarification

Where an ex-parte Section 74 GST assessment order is challenged on grounds identical to a controversy already decided by a coordinate Bench, and the revenue does not dispute the identity of the issue, courts will readily extend the same relief without re-litigating the underlying legal question – practitioners should identify and cite squarely applicable coordinate-Bench precedent to secure quick relief in similar ex-parte assessment challenges.

Sections Involved

  • Section 74, Uttar Pradesh Goods and Services Tax Act, 2017 / Central Goods and Services Tax Act, 2017 – governs determination of tax not paid, short paid, or ITC wrongly availed by reason of fraud, wilful misstatement or suppression of facts, and was the basis of the ex-parte assessment order under challenge.

Decision – In Favour of

The writ petition was allowed on the same terms as the earlier decision in M/s Mohan Agencies vs. State of U.P., setting aside the ex-parte assessment – the outcome favours the Assessee.

Case Details

Court: High Court of Judicature at Allahabad
Case No.: Writ Tax No. 703 of 2023
Neutral Citation: 2023:AHC:116923-DB
Coram: Hon'ble Saumitra Dayal Singh, J. and Hon'ble Rajendra Kumar-IV, J.
Date of Order: 25.05.2023

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