Anil Art And Craft Vs State of Uttar Pradesh And Another (Allahabad High Court)
The Allahabad High Court heard petitions challenging the order dated 03.02.2026 passed by the Deputy Commissioner, State Tax, Sector-2, Bhadohi, cancelling the petitioners’ registration under the U.P.G.S.T. Act, 2017. The petitioners submitted that proceedings initiated under Section 61 of the Act pursuant to a notice dated 23.09.2025 remained pending, no adjudication notice had been issued, and they were participating in those proceedings. They contended that issuance of a show cause notice dated 08.10.2025 under Section 29 during the pendency of Section 61 proceedings and the subsequent cancellation order were without jurisdiction, and that no premature conclusion should be drawn regarding allegations that their suppliers were fake. The State argued that an alternative statutory appeal was available and that proceedings for tax adjudication and cancellation of registration could simultaneously arise from the same transaction.
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The High Court observed that disputed factual issues and allegations contained in the show cause notice could not be examined in writ jurisdiction and should be determined on evidence before the statutory forum. It recognised that allegations of fake supplies could give rise to both cancellation proceedings and proceedings for confirmation of tax demand, while noting that scrutiny under Section 61 was still in progress and no inference should be drawn from its pendency.
