HCL Infotech Ltd. Vs State of Uttar Pradesh and 2 others (Allahabad High Court)
Summary: The Allahabad High Court considered a challenge to a show cause notice dated 22.07.2026 issued to HCL Infotech Ltd. under Section 74 of the UPGST Act, 2017 for FY 2017-18. The petitioner raised three principal objections: limitation, the effect of the earlier writ order dated 27.09.2024, and alleged prejudice reflected in paragraph 3(ग) of the impugned notice. After the submissions were completed, the petitioner also contended that proceedings under Section 73 had earlier been initiated for the same tax period through a notice dated 30.09.2023, which was dropped on 30.12.2023, and therefore a subsequent Section 74 notice could not be issued on the same grounds.
The record showed that the earlier Section 73 notice proposed a total demand of Rs.57612310.2, comprising tax, interest and penalty across several issues including imported-goods ITC, TRAN-1 credit, zero-rated supplies, unreconciled ITC and ITC reversal under Rules 42 and 43. Those proceedings were dropped on 30.12.2023. A subsequent Section 74 notice dated 03.08.2024 was challenged in the earlier writ proceedings, in which the High Court quashed the notice but expressly left it open to the authorities to initiate fresh Section 74 proceedings if the ingredients of fraud, wilful misstatement or suppression of facts to evade tax existed.
