M/S Bajaj Kagaj Limited vs. State Of Uttar Pradesh And Another
Original PDF →Facts
The petitioner, M/s Bajaj Kagaj Limited, filed a writ petition under Article 226 of the Constitution of India challenging a show cause notice dated June 29, 2025, issued by the Deputy Commissioner, State Tax, Unnao, Sector-1, Kanpur. The petitioner contended that the current proceedings initiated under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017, were without legal basis. This contention arose because earlier proceedings initiated against the petitioner under Section 130 of the same Act had already been dropped. The respondent is the State of Uttar Pradesh and another authority.
Held
The Court held that the show cause notice issued under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017, was without any basis in law. The reasoning was that the proceedings initiated under Section 130 of the same Act had already been dropped. The Court found that initiating proceedings under Section 74, in light of the dropped Section 130 proceedings, rendered the impugned notice legally unsustainable. Consequently, the Court quashed and set aside the show cause notice. The ratio decidendi is that once proceedings under a specific section of the GST Act are dropped, initiating fresh proceedings under another section for the same cause of action is not permissible and renders the subsequent notice invalid. The operative direction was to quash and set aside the impugned show cause notice.
Key Issues
1. Whether proceedings initiated under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017, are legally sustainable when prior proceedings under Section 130 of the same Act concerning the same matter have been dropped? Petitioner's argument: The petitioner argued that the show cause notice issued under Section 74 was without any basis in law, as the proceedings under Section 130 had already been dropped. They contended that initiating fresh proceedings under a different section for the same underlying issue was impermissible. Revenue's argument: The judgment does not record any specific arguments made by the revenue or state.
Sections Cited
Section 130, Section 74
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE AT ALLAHABAD WRIT TAX No. - 3741 of 2025 Court No. - 3 HON'BLE SHEKHAR B. SARAF, J. HON'BLE PRAVEEN KUMAR GIRI, J.
Heard learned counsel appearing on behalf of 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 June 29, 2025 passed by the Deputy Commissioner, State Tax, Unnao, Sector-1, Kanpur, being the respondent No.2 herein.
The factual matrix of the present case indicates that the proceedings that have been initiated against the petitioner under Section 130 of Uttar Pradesh Goods and Services Tax Act, 2017 have been dropped.
In light of the same, the proceedings that have now been initiated under Section 74 of the aforesaid Act are without any basis in law. Accordingly, the impugned show cause notice is quashed and set aside.
The writ petition is allowed.
September 22, 2025 Sanjeet Versus Counsel for Petitioner(s) : Abhay Mani Tripathi, Utkarsh Srivastava Counsel for Respondent(s) : C.S.C. (Praveen Kumar Giri,J.) (Shekhar B. Saraf,J.) M/S Bajaj Kagaj Limited .....Petitioner(s) State Of Uttar Pradesh And Another .....Respondent(s) SANJEET KUMAR YADAV High Court of Judicature at Allahabad
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.