Union Of India VS Aditya Auto Engineering Pvt Ltd

The present writ appeal stems from an order issued on February 17, 2021, by a learned Single Judge in the case of W.P.No.2803/2021, involving Aditya Auto Engineering Pvt. Ltd. versus the Union of India and others The case’s background indicates that the respondent company is involved in the business and sale of tippers The appeal challenges the Single Judge’s decision, which presumably addressed issues related to the company’s operations or regulatory matters involving the Union of India and other parties The specific details of the dispute, including the exact nature of the order and the grounds for appeal, are not provided, but the central issue revolves around the legal and administrative aspects affecting the respondent company’s business activities and interactions with governmental authorities.

A company involved in the operation of load bodies, bulkers, and garbage compactors was registered under the Central and Karnataka Goods and Services Tax Act, 2017 (CGST Act and KGST Act). The company failed to file its required GST returns in Form GSTR 3-B and did not pay its tax liabilities from September 2018 onwards. As a result, assessment orders were issued under Section 62 of the CGST Act, determining the tax liability and directing the company to file returns and pay arrears. The company did not comply and instead challenged one such assessment order for the period from September 2018 to August 2019 through an appeal. The appeal was dismissed due to the company not making the required statutory pre-deposit as mandated by Section 107 of the CGST Act. Subsequently, the company filed a writ petition (W.P.No.52967/2019) against the assessment order under Section 62 of the CGST Act, which is currently pending. Following this, the company filed another writ.

The respondent, registered under the Central and Karnataka Goods and Services Tax Act, 2017, failed to file its GST returns in Form GSTR 3-B and did not discharge its tax liabilities from September 2018 onward. Assessment orders were issued under Section 62 of the CGST Act, quantifying the tax liability and directing the respondent to file returns and settle arrears. Despite this, the respondent did not comply and instead appealed against one such order for the period from September 2018 to August 2019. The appeal was dismissed due to non-payment of the statutory pre-deposit as required under Section 107 of the CGST Act.

Subsequently, the respondent filed a writ petition challenging the assessment order under Section 62 of the CGST Act, which is still pending. They also filed another writ petition challenging the assessment order for the period from September 2019 to October 2020. Due to continuous non-filing of returns for six months, the respondent’s GST registration was canceled on October 19, 2020, which is also under challenge in the current writ petition/writ appeal.

The authorities issued multiple GSTR-3A notices under Section 46 of the CGST Act for non-filing of returns from October 2018 to October 2020, warning that failure to file returns within 15 days would result in tax liability assessment under Section 62 of the CGST Act. The respondent neither replied to these notices nor filed the GSTR returns. It is noted that the respondent regularly filed GSTR-1 until September 2020, passing the ITC to its customers.

A company involved in the trade of trailers, load bodies, bulkers, and garbage compactors was registered under the Central and Karnataka Goods and Services Tax Act, 2017 (CGST and KGST Act). However, it failed to file its GST returns in Form GSTR 3-B and discharge its tax liability from September 2018 onwards. As a result, assessment orders were issued under Section 62 of the CGST Act, quantifying the company’s tax liability and directing it to file returns and clear arrears.

Despite this, the company did not comply and instead challenged one such assessment order for the period from September 2018 to August 2019 in a first appeal, which was dismissed due to the absence of the statutory pre-deposit required under Section 107 of the CGST Act. Subsequently, the company filed a writ petition (W.P.No.52967/2019) against the assessment order, which is still pending. It then filed another writ petition challenging the assessment order for the period from September 2019 to October 2020.

The company’s continuous failure to file returns for six months led to the cancellation of its GST registration on October 19, 2020, following the due legal process. This cancellation is also contested in the current writ petition. Despite repeated GSTR-3A notices issued under Section 46 of the CGST Act, the company neither responded nor filed the required returns.

While the company regularly filed GSTR-1 until September 2020, enabling the transfer of Input Tax Credit (ITC) to its customers, it did not discharge its tax liabilities through GSTR-3B for the period from October 2018 to October 2020. Consequently, a notice REG-17 under Section 29(2) and Rule 22(1) of the CGST Rules was issued for the cancellation of the registration due to non-filing of GSTR-3B returns. The company did not respond or appear for the scheduled hearing, resulting in the cancellation of the registration effective January 1, 2020.

The company declared its tax liabilities in monthly GSTR-1 returns but failed to discharge them in GSTR-3B returns from October 2018 to October 2020. Consequently, orders ASMT-13 were issued under Section 62 read with Sections 39, 47, 50, and 122 of the CGST Act, claiming a tax liability of Rs. 16,83,45,476/-, interest as applicable, and a penalty of Rs. 1,70,71,385/-. A writ petition was filed to quash the cancellation of registration and various assessment orders for the periods from September 2019 to October 2020.

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