The Oriental Insurance Company LTD.Thru. Authorized Signatory vs. State Of U.P. Thru. Addl. Chief Secy. State Tax 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 invalid. The Court found the petitioner's contention to be correct upon perusal of the notice. The respondents' counsel also fairly conceded that the notice did not contain the necessary prerequisites for issuing a show cause notice 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. No specific amount in dispute was recorded. The Court did not leave any issue undecided.
Facts
The petitioner, The Oriental Insurance Company Ltd., filed a writ petition challenging a show cause notice dated October 10, 2025, issued by respondent No. 2 under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017. The petitioner contended that the show cause notice lacked the necessary ingredients required by Section 74, specifically evidence of fraud, willful misstatement, and suppression of facts to evade tax. The respondents, through their counsel, fairly conceded that the show cause notice did not contain the prerequisites for issuing a notice 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 Uttar Pradesh Goods and Services Tax Act, 2017, is valid in the absence of evidence of fraud, willful misstatement, and suppression of facts to evade tax? The petitioner argued that the show cause notice was bereft of the essential ingredients mandated by Section 74 of the U.P.G.S.T. Act, which requires the presence of fraud, willful misstatement, and suppression of facts to justify action under that provision. The petitioner contended that the notice failed to demonstrate these elements. The respondents, while not explicitly detailing their arguments, 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.
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW WRIT TAX No. - 1542 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.
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