Alms Frozen Foods Pvt Ltd Vs Union of India (Allahabad High Court)
Allahabad High Court has stayed coercive measures against Alms Frozen Foods Pvt Ltd in a case involving an Input Tax Credit (ITC) fraud allegation, citing a pending Supreme Court challenge to the circular forming the basis of the show cause notice. The interim order, issued on June 7, 2025, directs the respondents not to take any coercive steps for recovery based on an order dated February 3, 2025.
The petitioner argued that the show cause notice issued under Section 74 of the Central Goods and Services Tax Act, 2017, was based on Circular No. 80/54/2018-GST dated December 31, 2018, issued by the Tax Research Unit.
Counsel for Alms Frozen Foods highlighted that the Delhi High Court, in Association of Technical Textiles Manufacturers and Processors and another Vs. Union of India (November 16, 2023), had set aside this circular. While a Special Leave Petition (SLP) by the Union of India against this order is pending and has been stayed, the Delhi High Court, in a subsequent case, Al-Hadm Agro Food Products Pvt Ltd. Vs. Union of India and others (Writ Petition (Civil) No. 13428 of 2021, November 21, 2023), specifically instructed authorities not to consider the said circular, referencing the Association of Technical Textiles judgment.
