Rajdhani Udyog Vs State of U.P. And 2 Others (Allahabad High Court)
Allahabad High Court, in Rajdhani Udyog Vs State of U.P. and Others, dealt with the legality of proceedings initiated under Section 130 read with Section 122 of the GST Act. The petitioner argued that the business premises were surveyed in October 2019, leading to proceedings under Section 130, which relates to confiscation. However, the petitioner contended that the proper course should have been proceedings under Sections 73 or 74 concerning tax demand and recovery. Relying on earlier rulings, the petitioner claimed that the impugned appellate rejection was unlawful and contrary to established judicial precedent.
The petitioner’s counsel referred to the Allahabad High Court decision in S/s Dinesh Kumar Pradeep Kumar Vs. Additional Commissioner, Grade-2 & Another (Writ Tax No. 1082/2022, decided on 25 July 2024), later affirmed by the Supreme Court in April 2025. The same principle was also followed in M/s Janta Machine Tools Vs. State of U.P. (Writ Tax No. 1503/2024, decided on 22 May 2025). Despite these binding pronouncements, the authorities initiated confiscation proceedings under Section 130, leading the Court to observe that GST officers were acting “at their whims” in contravention of settled law.
