Capital Furniture House & Engineering Works Vs Commissioner of State Tax (Allahabad High Court)
Summary: The Allahabad High Court set aside the adjudication order dated 30.01.2025 passed against Capital Furniture House & Engineering Works for Financial Year 2017-18 after finding that the order confirmed a demand in excess of the amount proposed in the show cause notice. The show cause notice dated 05.08.2024 proposed tax demand of Rs. 96,000/- and penalty of Rs. 20,000/-. However, the adjudication order dated 30.01.2025 passed under Section 74 of the UPGST Act, 2017 and the Central GST Act, 2017 confirmed tax demand of Rs. 96,000/- and penalty of Rs. 96,000/-. The Court held that Section 75(7) of the UPGST Act, 2017 and the Central GST Act, 2017 is mandatory and prohibits confirmation of a demand in excess of the amount proposed. It therefore held that the impugned adjudication order, to the extent it confirmed the demand beyond the proposal, was without jurisdiction. The Court accordingly set aside the adjudication order and remitted the matter to respondent no. 2 to pass a fresh order after giving due opportunity of hearing to the petitioner, preferably within three months. The petitioner undertook not to seek any undue or long adjournments. The writ petition was disposed of.
