Bombay High CourtWP/7126/2025rule made absolute

Manek Steel Llp v. Union Of India (Through The Secretary)

2025-06-30Hon'Ble Shri Justice Jitendra Shantilal Jain , Hon'Ble Shri Justice M.S. Sonak3 pages

2025:BHC-AS:26142-DB Sayyed 16-WP.7126.2025.docx IN IN THE THE HIGH HIGH COURT COURT OF OF JUDICATURE JUDICATURE AT AT BOMBAY BOMBAY CIVIL APPELLATE JURISDICTION CIVIL APPELLATE JURISDICTION WRIT PETITION NO.7126 OF 2025 WRIT PETITION NO.7126 OF 2025 Manek Steel LLP Manek Steel LLP

...Petitioner

Versus

Union of India & Ors.

...Respondents

_____________________________________________________ Mr. Sujit Sahoo a/w Ms. Ira Misra for the Petitioner. Mr. Sujit Sahoo a/w Ms. Ira Misra for the Petitioner. Mr. Ram Ochani for Respondent No.1-UOI.

Mr. Ram Ochani for Respondent No.1-UOI.

_____________________________________________________

CORAM:

M. S. Sonak & Jitendra Jain, JJ.

DATED:

30 June 2025 ORAL JUDGMENT:- (Per M. S. Sonak, J.) 1.

Heard learned counsel for the parties.

Rule. The Rule is made returnable immediately at the request Rule. The Rule is made returnable immediately at the request and with the consent of the learned counsel for the parties. and with the consent of the learned counsel for the parties. 3.

The challenge in this petition is to the Order-in-Original dated The challenge in this petition is to the Order-in-Original dated 7 February 2022 and Order-in-Appeal dated 28 March 2024. 7 February 2022 and Order-in-Appeal dated 28 March 2024. 4.

The learned counsel for the Petitioner submits that the show The learned counsel for the Petitioner submits that the show cause notice dated 15 January 2022 was extremely vague and cause notice dated 15 January 2022 was extremely vague and contained no material on which the fraud, willful misstatement or contained no material on which the fraud, willful misstatement or suppression of facts was alleged. The show cause notice merely copied suppression of facts was alleged. The show cause notice merely copied the words of the statute and required the Petitioner to show cause. the words of the statute and required the Petitioner to show cause. Besides, the impugned order dated 7 February 2022 referred to the Besides, the impugned order dated 7 February 2022 referred to the Deputy Commissioner A.

E's letter dated 13 January 2022 as the basis Deputy Commissioner A.E's letter dated 13 January 2022 as the basis for the order of cancellation of the Petitioner's Registration. There was for the order of cancellation of the Petitioner's Registration. There was no reference to this letter in the show cause notice, and even a copy of no reference to this letter in the show cause notice, and even a copy of the same was not furnished to the Petitioner before the order was made. the same was not furnished to the Petitioner before the order was made.

Sayyed 16-WP.7126.2025.docx in this matter. He submitted that all this constitutes a gross breach of in this matter. He submitted that all this constitutes a gross breach of natural justice.

natural justice.

The learned counsel for the Petitioner submitted that the The learned counsel for the Petitioner submitted that the above crucial contentions were not even considered by the appellate above crucial contentions were not even considered by the appellate authority, rendering the appeal order vulnerable. authority, rendering the appeal order vulnerable. 6.

Mr. Ochani, learned counsel for the Respondent, based on Mr. Ochani, learned counsel for the Respondent, based on instructions instructions stated that the impugned orders may be set aside, but an tated that the impugned orders may be set aside, but an opportunity should be granted to the Petitioner to issue a fresh show opportunity should be granted to the Petitioner to issue a fresh show cause notice regarding the cancellation cause notice regarding the cancellation of registration. He further of registration.

He further submitted that such submitted that such a show cause notice, along with relevant material, a show cause notice, along with relevant material, would be issued to the Petitioner within four weeks from today, and the would be issued to the Petitioner within four weeks from today, and the same would be disposed of within four weeks of the receipt of a same would be disposed of within four weeks of the receipt of a response response from the Petitioner. He submitted that a personal hearing from the Petitioner. He submitted that a personal hearing would be granted to the Petitioner.

would be granted to the Petitioner.

Mr. Ochani submitted that in the meanwhile, some restraint Mr. Ochani submitted that in the meanwhile, some restraint should be imposed on the Petitioner regarding the utilisation of the should be imposed on the Petitioner regarding the utilisation of the accumulated ITC.

accumulated ITC.

The learned counsel for the Petitioner, on instructions, The learned counsel for the Petitioner, on instructions, submitted that for a period of three months from today, the submitted that for a period of three months from today, the accumulated ITC will not be utilized.

accumulated ITC will not be utilized.

Accordingly, we quash and set aside the impugned orders but Accordingly, we quash and set aside the impugned orders but grant the Respondents liberty to issue a fresh show cause notice as grant the Respondents liberty to issue a fresh show cause notice as proposed, within four weeks from today. The learned counsel for the proposed, within four weeks from today. The learned counsel for the Petitioner states that a response will be filed within four weeks of Petitioner states that a response will be filed within four weeks of receiving the show cause notice. The show cause notice must be receiving the show cause notice. The show cause notice must be disposed of within four weeks of the Petitioner filing his reply to the disposed of within four weeks of the Petitioner filing his reply to the same.

same.

Sayyed 16-WP.7126.2025.docx 10.

The Petitioner or authorised representative must be granted The Petitioner or authorised representative must be granted an opportunity for a personal hearing. The concerned authority must an opportunity for a personal hearing. The concerned authority must pass a reasoned order and communicate the same to the Petitioner. pass a reasoned order and communicate the same to the Petitioner. 11.

The Petitioner's statement about not utilising the accumulated The Petitioner's statement about not utilising the accumulated ITC for a period of three months from today is accepted as an ITC for a period of three months from today is accepted as an undertaking to the Court, and the Petitioner will have to abide by the undertaking to the Court, and the Petitioner will have to abide by the same. The Petitioner and the Respondents must abide by the timelines same. The Petitioner and the Respondents must abide by the timelines now set out. In particular, the Petitioner must not seek any undue now set out. In particular, the Petitioner must not seek any undue adjournments. At the same time, the Respondents must also not unduly adjournments. At the same time, the Respondents must also not unduly prolong the disposal of the show cause now that the Petitioner has prolong the disposal of the show cause now that the Petitioner has made the above statement.

made the above statement.

12.

The Rule is made absolute in the above terms without any The Rule is made absolute in the above terms without any order for costs. All concerned must act on an authenticated copy of this order for costs. All concerned must act on an authenticated copy of this order.

order.

(Jitendra Jain, J.) (M. S. Sonak, J.) Signed by: Sayyed Saeed Ali Designation: PA To Honourable Judge Date: 01/07/2025 18:14:37