R.A.A. Builders And Developers Vs Commissioner of Commercial Tax And 2 Others (Allahabad High Court)
The Allahabad High Court heard a writ petition challenging two orders passed by the GST authorities—an assessment order dated 30 April 2024 and an appellate order dated 13 February 2025. The petitioner contended that both orders were illegal as the tax demand confirmed in the assessment far exceeded the amount proposed in the show-cause notice issued under Section 73 of the GST Act, in violation of Section 75(7) of the Act.
The facts before the Court showed that a show-cause notice dated 31 January 2024 was issued to the petitioner alleging discrepancies in GST returns for the period April 2018 to March 2019 under CGST and SGST. In the notice, tax of ₹2,32,339 and penalty of ₹23,233.90 were proposed under CGST, aggregating to ₹2,55,572.90, with an equal amount proposed under SGST. The total proposed demand in the notice thus came to ₹5,11,145.80.
However, while passing the assessment order under Section 73 on 30 April 2024, the assessing authority substantially enhanced the demand. The assessment order determined tax of ₹17,54,820 and penalty of ₹1,75,482 under CGST, totalling ₹19,30,302, and imposed an equal amount under SGST. The cumulative demand was thereby increased to ₹38,60,604. The petitioner challenged this assessment in appeal, but the appeal was dismissed by the order dated 13 February 2025 without, according to the petitioner, due consideration of the material available on record.
