Karmendra Narayan Tiwari vs. U.O.I. Thru. Secy. Ministry Of Finance Deptt. Of Revenue New Delhi And 2 Others

Facts

The petitioner filed a writ petition challenging a show cause notice dated June 30, 2025, issued under Section 74(1) of the U.P. Goods and Services Tax Act, 2017. Subsequently, the petitioner was informed that a fresh show cause notice was issued on September 9, 2025, under the same provision. This second notice indicated a tax liability of Rs. 12,51,480.00, a penalty of Rs. 12,51,418.00, and interest of Rs. 14,37,366.00. The writ petition was filed before the High Court of Judicature at Allahabad, Lucknow Bench.

Held

The Court did not decide the merits of the challenge to the show cause notices. Instead, the writ petition was dismissed as withdrawn. The petitioner was granted liberty to approach the appropriate forum. Therefore, there is no finding on the legality or arbitrariness of the show cause notices, nor on the jurisdiction of the issuing authority. The court did not delve into the tax liability, penalty, or interest amounts mentioned in the subsequent notice. The ratio decidendi is that a party can withdraw their petition and pursue remedies elsewhere. No specific issue was expressly left undecided, as the petition was withdrawn before substantive adjudication.

Key Issues

1. Whether the initial show cause notice dated June 30, 2025, issued under Section 74(1) of the U.P. Goods and Services Tax Act, 2017, was illegal, arbitrary, and without jurisdiction? The petitioner argued that the notice was flawed and sought its quashing. The respondents' arguments are not recorded in the judgment. 2. Whether the subsequent show cause notice dated September 9, 2025, which indicated a tax liability, penalty, and interest, was valid? The petitioner's challenge was to the initial notice, but the subsequent notice was brought to the court's attention. The judgment does not explicitly frame the second notice as a separate issue for determination, but it was a material development.