Suspension based on prior verification findings was unsustainable where the alleged revenue loss arose later.

Suspension of a government servant under the U.P. Government Servant (Discipline and Appeal) Rules, 1999 was found unsustainable where an adverse verification report had already been obtained and relied upon by the competent authority before the alleged loss to revenue. The alleged fraudulent input tax credit claim arose after that report had been considered in the show cause process, so the suspension lacked sufficient factual basis. The order was therefore set aside.

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Issues: Whether the petitioner's suspension under the U.P. Government Servant (Discipline and Appeal) Rules, 1999 was sustainable when an adverse verification report had already been submitted and acted upon before the alleged loss to revenue.

Analysis: The adverse report was submitted after investigation and had already been taken into account by the competent authority while issuing the show cause notice. The alleged fraudulent claim of input tax credit occurred thereafter. In these circumstances, the suspension order was not supported by sufficient basis.

Conclusion: The suspension order was unsustainable and was set aside.

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