Mayank Mineral Vs State of U.P. and another (Allahabad High Court)
GST Demand Exceeds SCN: Allahabad HC Upholds Order, Allahabad High Court Upholds Higher GST Demand in Mayank Mineral Case, Allahabad High Court upholds GST demand exceeding show cause notice, citing taxpayer’s failure to explain discrepancies or produce requested documents.
Allahabad High Court has dismissed a petition filed by Mayank Mineral, affirming an order by the Assistant Commissioner, Jhansi, which raised a Goods and Services Tax (GST) demand significantly higher than the amount initially specified in the show cause notice (SCN). The court’s decision, issued on February 27, 2025, underscores the importance of taxpayer cooperation in producing requested documents and explaining discrepancies identified by tax authorities.
The case, Mayank Mineral Vs State of U.P. and another, challenged an order passed under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017. The Assistant Commissioner had demanded tax, interest, and penalty totaling Rs. 52,48,621/-.
Background of the Case:
The dispute originated from a show cause notice issued to Mayank Mineral on November 29, 2024, under Section 73 of the Act. This notice highlighted 13 points of discrepancy between the company’s declared data and an audit report. The summary of this initial SCN indicated a demand of Rs. 12,10,940.82/-.
