Unique Computer & Communication Shop Vs State of U.P. and another (Allahabad High Court)
Allahabad High Court has quashed a demand order of Rs. 68,07,953/- issued against Unique Computer & Communication Shop for the financial year 2018-19. The Court ruled that the demand order was in violation of Section 75(7) of the Goods and Services Tax Act, 2017, as it significantly exceeded the amount specified in the initial show cause notice (SCN).
The petitioner was issued an SCN dated December 10, 2023, under Section 73 of the GST Act, in Form GST DRC-01, proposing a demand of Rs. 45,66,398/- (covering tax, penalty, and interest). The SCN fixed January 10, 2023, as the deadline for filing a reply. However, the petitioner contended that this SCN was uploaded only on the ‘Additional Notices and Orders’ tab of the portal, making them unaware of its issuance. Consequently, no response was filed. A reminder notice was issued on March 9, 2024, setting March 17, 2024, as the new reply deadline. With no appearance or reply from the petitioner, an ex-parte order was passed on April 8, 2024, raising the final demand to Rs. 68,07,953/-, which included a penalty of Rs. 3,40,262/- and interest of Rs. 32,23,301/-.
