Supplier’s Blacklisting Upheld for Failing to Deliver Goods as per Order Despite Multiple Chances | HC

Case Details: S. G. Print-N-Pack Industries (P.) Ltd. v. State of Jharkhand - [2025] 172 taxmann.com 596 (Jharkhand)

Judiciary and Counsel Details

• M.S. Ramachandra Rao, CJ. & Deepak Roshan, J.
• Nitin Kumar Pasari, Adv. for the Petitioner.
• Piyush Chitresh, A.C. to A.G. for the Respondent.

Facts of the Case

The assessee was awarded a rate contract for printing and supplying brochures, leaflets, books, and souvenirs pursuant to an e-tender. Although the purchase orders were issued with specified timelines, the assessee failed to adhere to delivery schedules, claiming discrepancies between purchase orders and tender terms. After issuing show-cause notices and considering the assessee’s explanations, the authorities blacklisted the assessee for three years. Aggrieved by the order, the assessee filed a writ petition.

High Court Held

The Jharkhand High Court held that the assessee was not supplying the materials pursuant to purchase orders within the timelines. The authorities had issued a show cause notice for blacklisting and considered the explanation offered by the assessee. They then decided to blacklist the assessee for three years. The action of the authorities cannot be found fault with. There was no violation of the principles of natural justice. If at any point the assessee felt that the authorities were at fault, nothing prevented the assessee from terminating the agreement.