Facts of the Case

M/s Bimbo Bakeries India Private Limited, successor entity to M/s Modern Capital Food Pvt. Ltd. (later merged into M/s Ready Roti India Pvt. Ltd.), challenged an Adjudication Order dated 22.04.2024 passed under Section 73 of the U.P. GST Act by respondent no.5, creating a tax demand of Rs. 34,95,791 for Financial Year 2018-19. The petition, filed before the High Court of Judicature at Allahabad, also challenged the order on the ground that it was passed against a non-existent entity following the corporate merger, and separately assailed the vires of Notification No. 56 of 2023. The Division Bench noted that identical submissions had already been considered in Writ Tax No. 3964 of 2025, M/s Riya Construction vs. State of U.P., decided on 09.10.2025, and decided the present matter on 14.10.2025 following that precedent.

Issues Involved

  1. Whether the Section 73 adjudication order deserves to be set aside on grounds already accepted in the Riya Construction line of cases.
  2. Whether an order passed against a since-merged, non-existent entity can be sustained.
  3. Whether the challenge to the validity of Notification No. 56 of 2023 should be kept open pending its outcome elsewhere.

Petitioner's Arguments

  • The submissions on the core procedural deficiencies were identical to those already accepted by the Court in a large number of similar petitions, including Riya Construction, and ought to be applied here as well.
  • The order under challenge had been passed against M/s Modern Capital Food Pvt. Ltd., an entity that no longer existed following its merger, first into M/s Ready Roti India Pvt. Ltd. and now operating as M/s Bimbo Bakeries India Pvt. Ltd.
  • Separately, the validity of Notification No. 56 of 2023, under which limitation for passing the order was purportedly extended, was also under challenge and should not be foreclosed.

Respondent's Arguments

  • The order does not record any specific opposition on facts; the revenue's counsel is heard, but the Bench proceeds on the basis that the facts are similar to earlier decided matters, effectively applying the same relief as in Riya Construction.

Court Order / Findings

  • Finding the facts similar to Writ Tax No. 3964 of 2025 (Riya Construction), the Court allowed the writ petition and set aside the impugned Section 73 order, remitting the matter for fresh adjudication with specific procedural safeguards.
  • The Adjudicating Authority was directed to furnish the petitioner copies of the show cause notice, any additional/supplementary notices, and all Relied Upon Documents within two weeks of the petitioner filing a copy of the order.
  • The petitioner was allowed four further weeks to file its reply, after which a hearing date was to be fixed and communicated at least two weeks in advance.
  • The petitioner undertook to cooperate and not seek undue adjournments, and the entire remitted proceeding was directed to conclude within six months from first compliance.
  • The challenge to Notification No. 56 of 2023 was expressly kept open to be raised if the cause survives.

Important Clarification

  • Where a batch of GST orders share a common procedural infirmity already adjudicated upon, courts extend the same relief to subsequent similarly-placed petitioners without re-litigating the underlying issue.
  • An adjudication order passed against a corporate entity that has since merged into another may independently be assailed as one passed against a non-existent person.
  • Setting aside an order on procedural grounds does not amount to a ruling on the validity of Notification No. 56 of 2023, which remains available to be argued separately.

Sections Involved

  • Section 73, UP GST Act, 2017 — determination of tax not paid or short paid for reasons other than fraud or suppression of facts.
  • Notification No. 56/2023 – Central Tax — purported extension of the limitation period for passing orders under Section 73, whose vires remains under challenge before various High Courts.

Decision – In Favour of

Decided in favour of the assessee. The Section 73 order was set aside and remitted with a structured, document-backed reply and hearing process, while the Notification 56/2023 challenge was left open.

Case Details

Court: High Court of Judicature at Allahabad
Case No.: Writ Tax No. 5223 of 2025
Coram: Hon'ble Mr. Justice Saumitra Dayal Singh and Hon'ble Mr. Justice Indrajeet Shukla
Date of Decision: 14.10.2025

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