Neutral Citation No. - 2025:AHC:119783-DB Court No. - 3 Case :- WRIT TAX No. - 2993 of 2025 Petitioner :- M/S. Vehlna Steels @ Alloys P Limited Respondent :- State Of U.P. And 3 Others Counsel for Petitioner :- Praveen Kumar Counsel for Respondent :- C.S.C. Hon'ble Shekhar B. Saraf,J. Hon'ble Praveen Kumar Giri,J. 1. Heard Sri Praveen Kumar, learned counsel appearing on behalf of the petitioner and learned Standing Counsel appearing on behalf of the State respondents. 2. This is a writ petition under Article 226 of the Constitution of India wherein the writ petitioner is aggrieved by the order in original dated March 20, 2025 passed by respondent no.3, under Section 74 of the Uttar Pradesh Goods and Service Tax Act, 2017 (hereinafter referred to as "the Act") for the tax period April, 2022 to March, 2023. 3. Learned counsel appearing on behalf of the petitioner has pointed out before this Court that the survey that was carried out at the factory premises of the petitioner relating to consumption of electricity was not used in arriving at the production of material. He submits that the authorities carried out the survey and came to certain findings. However, when it came to the calculation of the production of the petitioner company, a circular dated May 9, 2018 issued by the Additional Commissioner, Commercial Tax, Uttar Pradesh, Lucknow was applied. The circular dated May 9, 2018 is delineated below:- "समस्त जजोनल एडडीशनल कममश्नर, ववामणिज्य कर उत्तर प्रददेश। . प्रददेश मम आयरन एण्ड स्टडील कवा उत्पवादन करनदे ववालडी कमतपय मनमवार्मातवा इकवाईयय दवारवा बबृहद पपैमवानदे पर जडी०एस०टडी० ककी कर चजोरडी कदे तथ्य शवासन कदे ससंजवान मम लवायदे गयदे हपै। जजनमम मनयमवाननुसवार कर अदवा करनदे ववालडी इकवाईयय कदे समक्ष असस्तत्व कवा ससंकट उत्पन्न हजो गयवा हपै। मवा० मनुख्यमसंतडी, उ०प्र० शवासन कजो हस्तगत करवायदे गयदे पत मदनवासंक 15.03. 2018 मम अवगत करवायवा गयवा हपै मक मनमवार्मातवा इकवाईयय दवारवा एक टन इसंगट /मबलदेट बनवानदे मम 800 सदे 850 ययमनट मबजलडी तथवा इसंगट/ मबलदेट सदे सररयवा बनवानदे मम 100 सदे 125 ययमनट मबजलडी ककी खपत आतडी हपै। जजसककी पनुमष्टि इण्डक्शन फनरश ककी अहमदवाबवाद सस्थत मनमवार्मातवा कम्पनडी मपै० इलदेक्टटजोथमर्मा एवसं इन्डक्टजोथमर्मा सदे ककी जवा सकतडी हपै। उत्तर प्रददेश नदे इन मनमवार्मातवा इकवाईयय दवारवा 01 टन स्टडील बनवानदे मम 200 ययमनट मबजलडी कवा खचर्मा मदखवाकर 50 प्रमतषत उत्पवादन पर जडी०एस०टडी० ककी चजोरडी ककी जवा रहडी हपै जजससदे प्रददेष सरकवार कजो बडडी रवाजस्व ककी क्षमत हजो रहडी हपै। उक्त सन्दरर्मा मम शवासन कदे पत मदनवासंक 26.04.2018 सदे आख्यवा उपलब्ध करवायदे जवानदे ककी अपदेक्षवा कदे क्रम मम आपसदे अपदेमक्षत हपै मक अपनदे अजधक्षदेत सस्थमत ऐसडी समस्त मनमवार्मातवा इकवाईयय कदे मबजलडी मबल / खपत व उसकदे सवापदेक्ष उत्पवादन आमद ककी रवाजस्व महत मम गहनतवा सदे प्ररवावडी जजॉच कवायर्माववाहडी करवातदे हहए कबृ त कवायर्माववाहडी ककी सयचनवा/आख्यवा सदे मनुख्यवालय कजो अवगत करवानदे कवा कष्टि करम। प्रकरणि मवा० मनुख्यमसंतडी सन्दरर्मा सदे आच्छवामदत एवसं लजो०मश० -2-12/11-2-2018-9(43)/18 मम दजर्मा हपै। इसजलए शवासन कजो आख्यवा प्रदेजसत मकयदे मकयदे जवानदे हदेतनु प्रवाथममकतवा आपदेमछत हपै।" 4. Upon a perusal of the above circular, it does not appear that the circular provides a mandate for calculating the production of all iron and steel industries on the basis of said circular, but only raises concern of theft being carried out by the industries. 5. Learned Standing Counsel appearing on behalf of the respondents submits that the authorities have correctly applied the circular and calculated the production carried out by the petitioner company. 6. Upon a careful perusal of the circular and the impugned order, we are of the view that applying the circular without a finding that the circular would be applicable to the industry of the petitioner, the calculation has been done by the respondent authorities. In fact, they have not gone as per their own survey, but relied on the circular treating the circular as a mandate. 7. We are of the view that the authorities have erred in law in applying the circular in the manner done so in the impugned order. 8. In light of the same, the impugned order is required to be quashed and set aside. We accordingly, quash and set aside the impugned order in original dated March 20, 2025 with a direction upon the authorities to once again grant an opportunity of hearing to the petitioner and pass a reasoned order under Section 74 of the Act. We make it clear that no adjournment shall be granted to the petitioner with regard to the personal hearing. 9. With the above directions, the writ petition is allowed. Order Date :- 22.7.2025 Dev (Praveen Kumar Giri J.) (Shekhar B. Saraf, J.) Digitally signed by :- DEV PRAKASH High Court of Judicature at Allahabad