Allahabad High Court issues rulings on GST procedures and hookah bans

The Allahabad High Court has issued several rulings impacting taxation and commercial regulations in Uttar Pradesh.

In a tax-related matter, the court set aside an adjudication order under the UP GST Act, ruling that notices must be physically served if a business registration has been cancelled. The court noted that portal-only service may leave taxpayers unaware of proceedings if they are unable to access the digital platform. Additionally, the court quashed a GST demand against Sarik Infratech, finding that an adjudication order cannot be based on grounds different from those specified in the original show-cause notice, even if the final tax amount is lower than originally proposed.

In a separate legal development, the Supreme Court of India issued a notice to the State of Uttar Pradesh regarding a challenge to the Allahabad High Court’s ban on hookah services. The High Court had previously ruled that providing hookah services in restaurants is prohibited, even within designated smoking areas, citing that such services violate rules intended to protect the right of non-smokers to clean air.