Quantification of tax liability cannot be done under Section 130 of CGST Act

Sapphire International Vs Additional Commissioner (Allahabad High Court)

In a significant ruling, the Allahabad High Court set aside an ex parte order regarding tax liability quantification under Section 130 of the Goods and Services Tax (GST) Act. This judgment, delivered in the case of Sapphire International Vs. Additional Commissioner, clarifies the proper legal procedures for determining tax liability and emphasizes the importance of adhering to statutory provisions. The court’s decision underscores that the quantification of tax liability cannot be done under Section 130 of the GST Act, but must follow the procedures outlined in Sections 73 or 74 of the Act.

Detailed Analysis

The case revolves around a writ petition filed by Sapphire International, challenging an ex parte order passed by the appellate authority on December 7, 2023. The petitioner contended that the quantification of liability under the Uttar Pradesh Goods and Services Tax Act, 2017, was improperly done under Section 130, which is not permissible by law.

Court Proceedings and Legal Arguments

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