Kisan Brick Field Vs State of U.P. (Allahabad High Court)
The petitioner challenged two orders passed by the tax authorities for the financial year 2020–21. The first order dated 16.02.2025 raised a demand of ₹6,52,259.04. The second order dated 08.10.2025 rejected the petitioner’s appeal on the ground of delay. The petitioner sought quashing of both orders.
A show-cause notice dated 11.11.2024 had been issued under Section 74 of the GST Act, calling upon the petitioner to explain why tax, interest, and penalty totaling ₹6,52,259.04 should not be imposed. The notice was uploaded under the “Additional Notices and Orders” tab, and the petitioner contended it remained unaware of it and therefore did not file a reply. A reminder fixing 27.01.2025 for filing a response was also issued, but no appearance or reply followed. Consequently, the demand order was passed.
The petitioner argued that the demand raised violated Section 75(7) of the Act, which prohibits tax authorities from demanding an amount exceeding what was specified in the show-cause notice. It was submitted that the notice had indicated only ₹2,34,626.52 towards tax, interest, and penalty, while the final demand claimed ₹6,52,259.04, exceeding the permissible scope under the law. The petitioner also argued that the show-cause notice indicated “NA” in the column for personal hearing, amounting to a violation of natural justice.
