Gospell Press Vs State of U.P. (Allahabad High Court)
The Allahabad High Court heard a writ tax petition filed by Gospell Press challenging a notice issued on 17 September 2025 under Section 130 of the Uttar Pradesh Goods and Services Tax Act, 2017, as well as a seizure order dated 6 September 2025 issued in Form GST INS-02 under Rule 139(7). The petitioner sought quashing of both actions and requested directions for refund of ₹91,74,527 and ₹1,24,00,000, allegedly recovered without jurisdiction under Section 74A(9). The petitioner argued that the notice under Section 130 could not be issued for an alleged violation of Section 35 of the Act, which pertains to record maintenance requirements. Reliance was placed on several earlier judgments, including decisions in Metenere Ltd., Maa Mahamaya Alloys Pvt. Ltd., Dayal Products, Shree Om Steels, and Dinesh Kumar Pradeep Kumar, contending that confiscation proceedings under Section 130 require a prior determination of tax liability under Sections 73 or 74 and cannot stem solely from purported procedural lapses relating to record keeping.
The petitioner further argued that the writ was maintainable even at the show cause notice stage because the notice lacked jurisdiction, relying on precedents such as Whirlpool Corporation and Siemens Ltd., which permit judicial interference where a notice is issued without authority of law. The State respondents, however, primarily questioned the maintainability of the petition at this preliminary stage.
