Dev Trading Company Vs Union of India and 2 Others (Allahabad High Court)
The Allahabad High Court dismissed a writ petition challenging a show cause notice dated 16/17.04.2026 and a corrigendum notice dated 04.05.2026 issued by the Assistant Commissioner, Central GST, Division-I, Kanpur under the Health Security se National Security Cess Rules, 2026.
The petitioner raised three principal objections. First, it was argued that the authorities ignored declarations submitted by the petitioner regarding the mode of manufacture of Pan Masala. According to the petitioner, a declaration for February 2026 had informed the authorities that manufacturing would be undertaken using manual labour. It was contended that despite this declaration having been acted upon, the show cause notice proceeded on the assumption that two machines had been installed during March and April 2026. The petitioner further submitted that it had already informed the authorities of its intention to switch from manual to mechanical processes with one machine from 01.03.2026 and to install a second machine from April 2026 onwards, for which separate declarations had also been filed.
Second, a jurisdictional objection was raised based on Order No. 01/2026 and Order No. 02/2026, both dated 29.01.2026. The petitioner contended that once authorities had been appointed under the Health Security se National Security Cess Act, 2025 and the Rules, no jurisdiction vested in a CGST authority to issue the impugned notice.
