Kartik Enterprises Vs State of U.P And Another (Allahabad High Court)
The Allahabad High Court declined to exercise its extraordinary jurisdiction under Article 226 of the Constitution in a petition filed by Kartik Enterprises challenging a 100% Input Tax Credit (ITC) penalty imposed under Section 22 of the U.P. GST Act, 2017.
The Court noted that the petitioner has statutory remedies available, including both a formal appeal and a rectification application under Section 161 of the Act. Since the petitioner had already filed a rectification application on April 2, 2025, which remains pending, the Court found no adequate reason to intervene in the matter at this stage.
Instead of quashing the penalty order, the High Court disposed of the petition, leaving the petitioner to pursue the statutory remedies. However, to ensure a timely resolution, the Court mandated that the pending rectification application be dealt with and decided by the concerned authority on or before November 30, 2025, after providing the petitioner a necessary opportunity for a hearing.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Present petition has been filed for F.Y. 2020-21.
2. Having heard Sri Suyash Agarwal, learned counsel for the petitioner and Sri Arvind Mishra, learned counsel for the revenue, it transpires that against the penalty order passed under Section 22 of the U.P. GST Act, 2017, besides the remedy of appeal, the petitioner also has a remedy of rectification under Section 161 of the said Act.
