Horizon Packs Pvt. Ltd. Vs Union Of India (Uttarakhand High Court)
The Uttarakhand High Court addressed a petition filed by a company challenging an order demanding ₹91,95,708 as tax, interest, and penalty under Section 73(9) of the Uttarakhand Goods and Services Tax Act, 2017. The petitioner’s sole ground for challenge was the discrepancy between the demand in the final order and the amount specified in the initial show cause notice (Form GST DRC-01), which mentioned a significantly lower sum of ₹27,06,340. The petitioner’s counsel cited Section 75(7) of the Act, which explicitly states that the amount of tax, interest, and penalty demanded in the final order cannot exceed the amount specified in the show cause notice, and no demand can be confirmed on grounds not mentioned in the notice.
The State counsel conceded that the impugned order was not in accordance with the aforementioned provision of the Uttarakhand Goods and Services Tax Act, 2017, as the final demand substantially exceeded the amount indicated in the show cause notice. In light of this clear violation of the statutory provision, the High Court found the writ petition liable to be allowed. Consequently, the court quashed the impugned order dated November 6, 2023. However, the court granted liberty to the Proper Officer to initiate proceedings afresh in the matter. The High Court expressed its expectation that the Proper Officer would pass a final order within four months, but only after strictly adhering to the procedures mandated by the Statute.
