Bombay High Court
Manek Steel Llp vs Union Of India (Through The Secretary) on 30 June, 2025
Author: M. S. Sonak
Bench: M. S. Sonak
2025:BHC-AS:26142-DB
Sayyed 16-WP.7126.2025.docx
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.7126 OF 2025
Manek Steel LLP ...Petitioner
Versus
Union of India & Ors. ...Respondents
_____________________________________________________
Mr. Sujit Sahoo a/w Ms. Ira Misra for the Petitioner.
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.
2. Rule. The Rule is made returnable immediately at the request
and with the consent of the learned counsel for the parties.
3. The challenge in this petition is to the Order-in-Original dated
7 February 2022 and Order-in-Appeal dated 28 March 2024.
4. The learned counsel for the Petitioner submits that the show
cause notice dated 15 January 2022 was extremely vague and
contained no material on which the fraud, willful misstatement or
suppression of facts was alleged. The show cause notice merely copied
the words of the statute and required the Petitioner to show cause.
Besides, the impugned order dated 7 February 2022 referred to the
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
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.
As such, the Petitioner had no opportunity to meet with the allegations
Sayyed 16-WP.7126.2025.docx
in this matter. He submitted that all this constitutes a gross breach of
natural justice.
5. The learned counsel for the Petitioner submitted that the
above crucial contentions were not even considered by the appellate
authority, rendering the appeal order vulnerable.
6. Mr. Ochani, learned counsel for the Respondent, based on
instructions stated that the impugned orders may be set aside, but an
opportunity should be granted to the Petitioner to issue a fresh show
cause notice regarding the cancellation of registration. He further
submitted that such a show cause notice, along with relevant material,
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
response from the Petitioner. He submitted that a personal hearing
would be granted to the Petitioner.
7. Mr. Ochani submitted that in the meanwhile, some restraint
should be imposed on the Petitioner regarding the utilisation of the
accumulated ITC.
8. The learned counsel for the Petitioner, on instructions,
submitted that for a period of three months from today, the
accumulated ITC will not be utilized.
9. Accordingly, we quash and set aside the impugned orders but
grant the Respondents liberty to issue a fresh show cause notice as
proposed, within four weeks from today. The learned counsel for the
Petitioner states that a response will be filed within four weeks of
receiving the show cause notice. The show cause notice must be
disposed of within four weeks of the Petitioner filing his reply to the
same.
Sayyed 16-WP.7126.2025.docx
10. The Petitioner or authorised representative must be granted
an opportunity for a personal hearing. The concerned authority must
pass a reasoned order and communicate the same to the Petitioner.
11. The Petitioner's statement about not utilising the accumulated
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
same. The Petitioner and the Respondents must abide by the timelines
now set out. In particular, the Petitioner must not seek any undue
adjournments. At the same time, the Respondents must also not unduly
prolong the disposal of the show cause now that the Petitioner has
made the above statement.
12. 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.
(Jitendra Jain, J.) (M. S. Sonak, J.)
Signed by: Sayyed Saeed Ali
Designation: PA To Honourable Judge
Date: 01/07/2025 18:14:37
