M/S S.S. Enterprises Lko. Thru. Its Partner Vimal Kumar Shukla vs. State Of U.P. Thru. Addl. Chief Secy. Tax And Registration U.P. Lko. And 3 Others
Held
The Court held that the demand raised in the order dated 11.02.2025 was in violation of Section 75(7) of the Goods and Services Tax Act, 2017. The Court noted that the show-cause notice indicated an amount of Rs. 32,11,470/- for tax, interest, and penalty, while the final demand raised was Rs. 60,54,984/-. This discrepancy, where the demand exceeded the amount specified in the notice, was explicitly prohibited by Section 75(7). Regarding the personal hearing, the Court found that if the petitioner was genuinely unaware of the show-cause notice, the specific indication of reply dates lost its significance. Therefore, the order dated 11.02.2025 could not be sustained due to the violation of Section 75(7). The Court quashed both the order dated 13.10.2025 and the order dated 11.02.2025 and remanded the matter back to respondent no. 4 to provide the petitioner an opportunity to file a response to the show-cause notice and pass a fresh order after providing a hearing.
Facts
The petitioner, M/S S.S. Enterprises Lko., filed a writ petition challenging an order dated 11.02.2025 passed by respondent no. 4, which raised a demand against them. They also sought to quash an order dated 13.10.2025 by respondent no. 3, which rejected their appeal due to delay. The petitioner received an online GST ASMT-10 regarding discrepancies, followed by a show-cause notice dated 22.11.2024 under Section 74 of the GST Act, 2017 (GST DRC-01), proposing recovery of tax, penalty, and interest. The petitioner claims they were unaware of this notice as it was uploaded to the 'Additional Notices and Orders' tab and thus could not respond. This led to the ex parte order dated 11.02.2025 raising the demand.
Key Issues
1. Whether the demand raised in the order dated 11.02.2025, including tax, penalty, and interest, is contrary to the show-cause notice dated 22.11.2024 and in violation of Section 75(7) of the Goods and Services Tax Act, 2017? Petitioner's argument: The petitioner contended that the demand raised, totaling Rs. 60,54,984/-, exceeded the amount specified in the show-cause notice (Rs. 32,11,470/-), thereby violating Section 75(7). They also argued that the indication of 'NA' for personal hearing in the notice, despite fixing dates for reply, violated principles of natural justice. Revenue's argument: The revenue argued that the petitioner failed to file a response despite notice and reminders, thus the order was not in violation of natural justice. They further submitted that charging interest and penalty is statutory and can be demanded irrespective of whether it was explicitly mentioned in the show-cause notice.
Sections Cited
Section 74, Section 75(7)
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW WRIT TAX No. - 1492 of 2025 Court No. - 6 HON'BLE JASPREET SINGH, J.
Supplementary affidavit filed by the petitioner, is taken on record.
This petition is directed against the order dated 11.02.2025 passed by respondent no.4, whereby a demand has been raised against the petitioner. The petitioner further prayed for quashing of the order dated 13.10.2025 passed by the respondent No.3, whereby the appeal of the petitioner has been rejected on the ground of delay.
The petitioner was issued an online GST ASMT-10, whereby the GST ASMT-10 had alleged certain discrepancies. Thereafter a show-cause notice dated 22.11.2024 under Section 74 of Goods and Services Tax Act, 2017 (hereinafter referred to as 'the Act') in GST DRC-01 was issued. The notice, inter alia, called upon the petitioner as to why tax, penalty and interest be not imposed. As the said notice was uploaded on 'Additional Notices and Orders' tab, the petitioner, being unaware of the same, could not file any response to the said show-cause notice. However, as no appearance was made, the same led to passing of the order dated 11.02.2025 raising the demand as i
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