Failure of Appellate Authority to Consider Objections Filed by Assessee Reflected Non-Application of Mind | HC

Case Details: Dayco Power Transmission (P.) Ltd. v. Union of India - [2024] 161 taxmann.com 758 (Allahabad)

Judiciary and Counsel Details

• • Ajay Bhanot, J.
  • Mehul Khare, Preetika Mishra & Shrey Ashat for the Petitioner.
  • Prabhakar Tripathi, for the Respondent.

Facts of the Case

The petitioner is aggrieved by the order passed by the competent authority in exercise of powers under Section 129 (3) of the GST Act detaining the goods and the vehicle of the petitioner and imposing a demand of applicable tax and penalty equal to 100% of the tax payable on the seized goods. It filed appeal but it was rejected. It filed writ petition and contended that the detained goods were being transported as part of stock transfer and the goods were not being moved in pursuance to any sale or purchase.

High Court Held

The Honorable High Court noted that the Appellate Authority had failed to consider petitioner’s contention and the detention of the goods and imposition of tax and penalty were unlawful. The Court further noted that the failure of the Appellate Authority to advert to said objections of the petitioner, reflected non-application of mind to germane issues and it would vitiate the impugned order. Therefore, it was held that the impugned order was to be set aside and matter was to be remitted to Appellate Authority for fresh consideration.