Taxpayer Wins Challenge to GST Tax Orders Due to Procedural Defects in Notice Issuance Under Section 74(1)

HC upheld petitioner's challenge to tax orders under Section 74(1) of UP GST Act. Court found lack of proper notice invalidated tax liability assessment. Orders dated July 7, 2021 and August 31, 2022 were quashed, with directions to issue fresh notice following statutory procedures before reassessing tax liability.

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Issues involved:
The issue involves a writ petition challenging orders passed under Section 74(1) of the Uttar Pradesh Goods and Services Tax Act, 2017 for lack of proper notice to the petitioner.

Judgment Summary:

Issue 1: Lack of proper notice under Section 74(1) of the Act
The petitioner challenged orders dated July 7, 2021, and August 31, 2022, issued by the Assistant Commissioner and Additional Commissioner, respectively, for failure to issue a notice under Section 74(1) of the Act. A notice was issued under Section 74(5) asserting tax liability without following the procedure of issuing a show cause notice under Section 74(1). The court found that the proper show cause notice was not issued to the petitioner, rendering the impugned orders baseless. Consequently, the court quashed and set aside the orders dated July 7, 2021, and August 31, 2022. The respondents were directed to proceed after issuing a fresh notice under Section 74(1) of the Act. The writ petition was allowed with these observations.

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