The HC allowed the petition under section 74 of the UP VAT Act...

The HC allowed the petition under section 74 of the UP VAT Act and remanded the matter for fresh consideration. The court held that the petitioner failed to adduce material proving payment through banking channels, yet the initiation of proceedings rested on a subsequent physical inspection finding the selling dealer absent despite contemporaneous filings (GSTR-1/3B) evidencing returns and tax payment. Absent any recorded finding of fraud, wilful misstatement or suppression to evade tax, section 74 could not be validly invoked. The HC directed the assessing authority to verify transactional records on statutory portals and reconsider assessment in accordance with law and applicable procedural circulars.