Parvez Alam vs. State Of U.P. And Another

Held

The Court held that the notice issued was merely a show-cause notice under Section 74 of the U.P. GST Act. Therefore, the Court did not set aside the notice. Instead, it disposed of the writ petition by directing the petitioner to participate in the proceedings before respondent no. 2. The petitioner was granted two weeks from the date of the order to file their objections. Upon receipt of these objections, respondent no. 2 was directed to proceed to pass an appropriate order in accordance with the law, after providing the petitioner with a due opportunity of personal hearing. The Court's ratio is that a show-cause notice, even if challenged for procedural infirmities, should generally be allowed to be responded to by the assessee before the High Court intervenes, unless there are exceptional circumstances.

Facts

The petitioner, Parvez Alam, filed a writ petition before the Allahabad High Court challenging a show-cause notice dated July 28, 2023, issued by respondent no. 2. The notice was issued under Section 74 of the U.P. GST Act and pertained to the tax period of October 2021 to March 2022. The petitioner argued that the show-cause notice was not in accordance with the law. The respondent, representing the State of U.P., contended that the notice was merely a show-cause notice and the petitioner had the opportunity to raise objections regarding its legality during the proceedings.

Key Issues

1. Whether the show-cause notice dated July 28, 2023, issued under Section 74 of the U.P. GST Act, is in accordance with the law. The petitioner argued that the notice was not in accordance with law and should be set aside. The respondent argued that the notice was a preliminary step, a show-cause notice, and the petitioner could raise all objections, including the legality of the notice, during the subsequent proceedings before respondent no. 2.