Pilcon Infrastructure Private Limited Vs State of U.P. And Another (Allahabad High Court)
The writ petition was filed challenging a notice dated 17.10.2025 issued to the petitioner under Section 74 of the U.P. GST Act, 2017. The petitioner contended that the notice was without jurisdiction as there was no allegation or existence of fraud, willful misstatement, or suppression of facts. It was submitted that the supplier firm, M/s Maa Kamakhaya Trading, registered in Chhattisgarh, was a genuine entity that had issued valid tax invoices and e-way bills, and that supplies were made against payments through banking channels. According to the petitioner, the inference of fraudulent availment of input tax credit (ITC) was drawn solely on the basis of information received from the Director General of GST Intelligence (DGGI), without proper examination.
It was further pointed out that on the same allegations, the petitioner’s ITC had earlier been blocked, which was challenged before this Court in an earlier writ petition. That blocking order was set aside on 29.10.2025, though liberty was granted to the authorities to initiate fresh proceedings in accordance with law. Instead of following that course, the petitioner was issued the impugned show cause notice.
The State opposed the writ petition, submitting that the dispute raised factual issues which should be examined by the adjudicating authority. It was argued that the earlier order setting aside the blocking of ITC did not affect the present show cause notice. Referring to the contents of the notice, the State asserted that material facts had been recorded which indicated, prima facie, that ITC may have been availed fraudulently or by suppression of facts or willful misstatement. Such issues, it was submitted, required adjudication after consideration of evidence.
