Nageen Traders And Molding India Pvt. Ltd. Vs State of U.P. (Allahabad High Court)
Summary: The Allahabad High Court considered a writ petition under Article 226 of the Constitution of India filed by M/s Nageen Traders and Molding India Pvt. Ltd. challenging a show-cause notice dated 19.11.2025 issued under Section 122(1)(ii) and DRC-01, as well as the consequential penalty order dated 24.06.2026 under Sections 122(1)(ii) and 122(1)(vii) and DRC-07. The petitioner contended that the notice for the financial year 2023-2024 suffered from patent lack of jurisdiction because it had been issued by a Deputy Commissioner of State Tax.
Read SC Interim Order: Supreme Court Stays Allahabad HC Order on GST Section 122 Jurisdiction
According to the petitioner, the expression “proper officer” was not defined under the UPGST Act, 2017 and the Central Government’s Circular No. 254/11/2025-GST dated 27.10.2025 prescribed monetary limits and identified officers competent to issue notices under Section 122. Since the penalty proposed was above Rs. 1 crore, the petitioner argued that an Additional Commissioner or Joint Commissioner of Central Tax ought to have issued the notice. The State relied upon UPGST Circulars dated 11.12.2018 and 10.05.2022, submitting that the proper officer for proceedings under Section 122 was the officer contemplated under Section 127.
