Solvi Enterprises Vs Deputy Commissioner State Tax (Allahabad High Court)
Allahabad High Court Remits GST Case After Demand Exceeds Notice Amount
Summary: M/S Solvi Enterprises challenged an adjudication order dated 16.12.2025 that confirmed a demand of Rs. 2,63,35,254.80/-, although the show-cause notice had proposed a demand of Rs. 8,50,000/-. Counsel for the petitioner submitted that the confirmed demand far exceeded the amount stated in the notice. The Allahabad High Court observed that the matter required consideration because the order appeared to violate Section 75(7) and the petitioner had never been put on notice regarding the demand confirmed in the order. Standing Counsel for the revenue fairly acknowledged that a clear error had entered the adjudication order. Without prejudice to the revenue’s right to proceed strictly in accordance with law, he stated that the order could be set aside and the matter remitted to respondent no. 1. In view of that statement, the Court found no useful purpose in keeping the petition pending or calling for a counter affidavit. It allowed the writ petition, set aside the adjudication order and remitted the matter to respondent no. 1. On remand, the officer may proceed on the show-cause notice dated 30.09.2025 or issue a fresh notice if limitation survives. The Court did not determine the underlying demand.
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