Vibhuti Tyres Vs State of U.P. and Another (Allahabad High Court)
GST order shall not be in excess of the amount specified in the notice and no demand shall be confirmed on the grounds other than the grounds specified in the notice: Allahabad High Court
Allahabad High Court has set aside a demand of over ₹32 lakh raised against Vibhuti Tyres for the period of July 2017 to March 2018, ruling that the final demand significantly exceeded the amount specified in the initial show-cause notice. The court found this to be a clear violation of Section 75(7) of the Goods and Services Tax Act, 2017, which mandates that the amount of tax, interest, and penalty demanded in an order cannot be in excess of what was stated in the notice.
The case, titled Vibhuti Tyres Vs State of U.P. and Another, centered on a demand order dated November 18, 2023, issued by respondent no. 2. This order sought to recover a total of ₹32,97,336, which included tax, interest amounting to ₹15,93,456, and a penalty of ₹1,54,898.
Earlier, on September 29, 2023, a show-cause notice under Section 73 of the GST Act had been issued to Vibhuti Tyres in form GST DRC-01. This notice proposed a potential demand of ₹8,81,080, encompassing tax, interest, and penalty.
