S.S. Enterprises Vs State of U.P. (Allahabad High Court)
The Allahabad High Court considered a writ petition challenging two orders passed by the GST authorities: one dated 11.02.2025 raising a demand against the petitioner, and another dated 13.10.2025 rejecting the petitioner’s appeal on the ground of delay.
The proceedings originated from the issuance of an online GST ASMT-10 pointing out alleged discrepancies in the petitioner’s records. Subsequently, a show-cause notice dated 22.11.2024 under Section 74 of the Goods and Services Tax Act, 2017 was issued in Form GST DRC-01. The notice called upon the petitioner to explain why tax, interest, and penalty should not be imposed. The petitioner contended that this notice was uploaded under the “Additional Notices and Orders” tab on the portal, and due to lack of awareness, no response was filed. As there was no appearance on behalf of the petitioner, the respondent authority proceeded to pass the order dated 11.02.2025 raising the demand.
The petitioner argued that the impugned demand was contrary to the show-cause notice and in clear violation of Section 75(7) of the GST Act. It was submitted that the show-cause notice quantified a demand of ₹32,11,470 towards tax, interest, and penalty, whereas the final order raised a consolidated demand of ₹60,54,984 under the same three heads. According to the petitioner, Section 75(7) expressly prohibits confirmation of any demand exceeding the amount specified in the notice or on grounds not mentioned therein. It was further contended that the show-cause notice and the reminder fixed dates for filing a reply, but the column relating to personal hearing mentioned “NA,” which amounted to denial of an opportunity of hearing and violation of principles of natural justice. On these grounds, the petitioner sought quashing of both the demand order and the appellate order, and remand of the matter for fresh consideration.
