UPGST Act | Confiscation Notice U/S 130 Cannot Be Issued For Mere Violation Of Record-Maintenance Requirements U/S 35: Allahabad HC
Recently, the Allahabad High Court reiterated that notices under Section 130 of the Uttar Pradesh Goods and Service Tax Act 2017 for confiscation and levy of penalty, could not be issued for alleged violation of maintenance of accounts and records as required under Section 35 of the Act. It was held that such notices under Section 130 could only be issued once the...
Recently, the Allahabad High Court reiterated that notices under Section 130 of the Uttar Pradesh Goods and Service Tax Act 2017 for confiscation and levy of penalty, could not be issued for alleged violation of maintenance of accounts and records as required under Section 35 of the Act.
It was held that such notices under Section 130 could only be issued once the department had determined the liability of tax under Sections 73 or 74 of the Act.
The Court relied on the judgement of the Allahabad High Court in M/s Maa Mahamaya Alloys Pvt. Ltd. v. State of U.P. and Ors. and the Supreme Court in Whirlpool Corporation v. Registrar of Trae Marks, Mumbai and Ors. to hold that the show cause notices issued without determination of liability would make them wholly without jurisdiction.
“Upon perusal of the judgements relied upon by learned counsel for the petitioner, we unequivocally come to the conclusion that the present notice issued under Section 130 of the Act, 2017 cannot be issued in alleged violation of Section 35 of the Act, 2017 and the proceedings initiated by the department are accordingly without any jurisdiction and law,” held the division bench comprising Justice Shekhar B. Saraf and Justice Prashant Kumar.
Accordingly, the writ was disposed of.
Case Title: M/s Gospell Press Thru. Partner Mr. Rajiv Goyal v. State of U.P. Thru. Prin. Secy. State Tax LKO And 3 Ors. [WRIT TAX No. - 1283 of 2025]
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