The Oriental Insurance Company LTD. Lko. Thru. Autho. Sign. Bindu Jain Das Gupta vs. State Of U.P. Thru. Addl. Chief Secy. State Tax Deptt. U.P. Lko. And 2 Others
Held
The Court held that the show cause notice dated October 10, 2025, issued by respondent No. 2 under Section 74 of the U.P.G.S.T. Act, was deficient. The Court found the petitioner's contention to be correct upon perusal of the notice. The respondents also conceded that the notice did not contain the necessary prerequisites for its issuance under Section 74. Consequently, the Court quashed and set aside the show cause notice. The Court granted liberty to the Department to proceed against the petitioner under any other applicable provision of the U.P.G.S.T. Act, in accordance with the law. The reasoning was based on the admitted lack of essential ingredients in the show cause notice as per the requirements of Section 74.
Facts
The petitioner, The Oriental Insurance Company Ltd., filed a writ petition under Article 226 of the Constitution of India challenging a show cause notice dated October 10, 2025. This notice was issued by respondent No. 2 under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 (U.P.G.S.T. Act). The petitioner contended that the show cause notice lacked the essential ingredients required by Section 74, specifically evidence of fraud, willful misstatement, and suppression of facts to evade tax. The respondents, through their counsel, conceded that the show cause notice did not contain the necessary prerequisites for its issuance under Section 74 of the U.P.G.S.T. Act.
Key Issues
1. Whether the show cause notice dated October 10, 2025, issued under Section 74 of the U.P.G.S.T. Act, is valid and contains the requisite ingredients of fraud, willful misstatement, and suppression of facts to evade tax, as mandated by the said provision? The petitioner argued that the show cause notice was bereft of the essential ingredients of fraud, willful misstatement, and suppression of facts, which are prerequisites for invoking Section 74 of the U.P.G.S.T. Act. The petitioner contended that the notice failed to provide any evidence or basis for these allegations. The respondents, on the other hand, fairly conceded that the show cause notice did not contain the necessary prerequisites required to be issued under Section 74 of the U.P.G.S.T. Act.
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW WRIT TAX No. - 1537 of 2025 Court No. - 3 HON'BLE SHEKHAR B. SARAF, J. HON'BLE MANJIVE SHUKLA, J.
Heard learned counsel for the parties.
This is a writ petition under Article 226 of the Constitution of India wherein the writ petitioner is aggrieved by the show cause notice dated 10.10.2025 issued by the respondent No.2 under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as the 'U.P.G.S.T. Act').
Shri Atul Gupta, learned counsel for the petitioner submits that the show cause notice is bereft of the ingredients of Section 74 of the U.P.G.S.T. Act that require evidence of fraud, willful misstatement and suppression of facts to evade tax.
Upon perusal of the show cause notice, the contentions of the petitioner appears to be correct.
Learned counsel for the respondents also fairly submits that the show cause notice does not contain the necessary prerequisites that are required to issue a show cause notice under Section 74 of the U.P.G.S.T. Act.
In light of the same, the show cause notice dated 10.10.2025 is quashed and set aside with liberty to the Department to proce
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.