Vimlesh Kumar Contractor Vs State of U.P. and 3 others (Allahabad High Court)
In the Allahabad High Court case Vimlesh Kumar Contractor Vs State of U.P. and 3 others, the petitioner challenged orders passed by GST authorities seeking to levy tax, interest, and penalty under the Goods and Services Tax Act for the financial year 2018-19. The petitioner, a proprietorship registered under GST and engaged in work contracts, contended that the proceedings were initiated without jurisdiction since the works in question were executed prior to the implementation of GST, during the VAT regime, for the fiscal years 2015-16 and 2016-17. The petitioner argued that the payments received for these works were made later, and the UP Jal Nigam (respondent no. 4) had already deducted VAT at 4% at the time of payment and issued a certificate to this effect, which was allegedly disregarded by the GST authorities.
The petitioner stated that a notice under Section 73 of the GST Act was uploaded under the “additional notice and order” tab on 31.1.2024, which he could not view, and therefore could not file a reply. Despite this, GST authorities passed an order on 28.4.2024 imposing tax, penalty, and interest. When the petitioner filed an appeal along with a delay condonation application, it was dismissed on 21.1.2025 without consideration of the petitioner’s grounds or supporting documents. Counsel for the petitioner submitted that the GST authorities had no jurisdiction to initiate proceedings since the work contracts were executed under the VAT regime and no GST liability arose. He emphasized that the authorities failed to verify the payment records with the Jal Nigam before initiating proceedings, making the action unlawful.
