Facts of the Case

Parvez Alam challenged a show cause notice dated 28.07.2023 issued under Section 74 of the U.P. GST Act by the respondent, relating to the tax period October 2021 to March 2022. He contended that the notice was not in accordance with law and should be set aside.

Issues Involved

  1. Whether the High Court should intervene at the show cause notice stage under Section 74 of the UP GST Act before the departmental authority had passed any order.

Petitioner's Arguments

  • The show cause notice issued under Section 74 of the U.P. GST Act was not in accordance with law and should be set aside.

Respondent's Arguments

  • The notice was merely a show cause notice, and the petitioner could raise his objection regarding its legality by participating in the departmental proceedings.

Court Order / Findings

  • The Court held that since the notice was merely a show cause notice, the petition was disposed of by requiring the petitioner to participate in the proceedings and file objections within two weeks.
  • On receiving objections, the respondent authority was directed to pass appropriate orders after affording an opportunity of personal hearing, in accordance with law.

Important Clarification

This order does not decide whether the Section 74 show cause notice itself is legally valid or whether any tax, interest or penalty is actually due — it simply requires the petitioner to respond to the notice through the normal departmental process, which will then culminate in an appealable order. Courts generally decline to quash show cause notices at the threshold, since the recipient retains a full opportunity to contest the allegations before the authority.

Sections Involved

  • Uttar Pradesh Goods and Services Tax Act, 2017, Section 74
  • Constitution of India, Article 226

Decision – In Favour of

Disposed of without a decision on merits — the petitioner was directed to participate in the departmental adjudication rather than obtaining relief from the writ court.

Case Details

  • Court: High Court of Judicature at Allahabad
  • Case Number: Writ Tax No. 1119 of 2023
  • Neutral Citation: 2023:AHC:187641-DB
  • Coram: Chief Justice Pritinker Diwaker and Justice Ashutosh Srivastava
  • Date of Order: 27.09.2023

Link to Download the Order

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