Anand Swaroop Rastogi Vs State of U.P. And 2 Others (Allahabad High Court)
In the case of Anand Swaroop Rastogi Vs State of U.P., the Allahabad High Court addressed the validity of GST demand orders issued solely based on findings from the Income Tax Department without independent verification. The petitioner, engaged in jewelry trading and holding GSTIN No. 09AABHA6768A1ZI, had closed his business in September 2017 and established a new partnership firm with a different PAN. Despite this, GST proceedings were initiated based on a survey conducted by the Income Tax Department, which found discrepancies unrelated to the petitioner’s current business activities. The petitioner’s objections, including evidence of the business closure and differing PANs, were not considered. The Court found that the GST demand orders were flawed as they relied exclusively on Income Tax findings without an independent assessment by GST authorities. Consequently, the Court quashed the orders and remanded the case for a fresh examination by the proper officer. The new proceedings must be conducted with a reasoned and speaking order within three months of receiving the Court’s certified copy. Any payments made under the invalid orders will be subject to the outcome of the new proceedings.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
