Shriddha Kumari Vs State of Up And Another (Allahabad High Court)
The writ petition concerned a challenge to a suspension order dated 23 September 2025 issued against a Deputy Commissioner, State Tax. The petitioner joined service as a Commercial Tax Officer in August 2008 and received subsequent promotions, eventually serving as Deputy Commissioner, State Tax, Sector-12, Prayagraj. The suspension was imposed on the ground that a firm, M/s Kanhaiya Enterprises, had obtained deemed GST registration on 29 May 2023 and was later found to be bogus during an investigation by GST officials. Authorities alleged that the petitioner failed to initiate action for cancellation of the registration and allowed set-off of Input Tax Credit (ITC), resulting in a loss to the State exchequer of ₹1,78,97,368.50. The suspension was issued in contemplation of an inquiry into these allegations.
The petitioner argued that the suspension was based on misconception. It was submitted that the firm had applied for GST registration on 31 March 2023, received deemed registration on 1 May 2023, and was found to be bogus on 29 May 2023. However, the petitioner had proceeded on child-care leave from 1 June 2023 to 25 June 2023 and then on medical leave from 26 June 2023 to 22 August 2023. Thus, the petitioner was not present in office during the relevant period to initiate cancellation proceedings. It was also argued that cancellation requires issuance of a show-cause notice and is not an immediate decision. The petitioner further pointed out that she was transferred to Gorakhpur on 22 August 2023, and the alleged illegal ITC set-off claimed by the firm related to December 2023 to March 2024, during which period she was not posted in Prayagraj. Therefore, it was contended that the allegations lacked foundation and at best could attract only a minor penalty under the applicable rules.
