Allahabad High Court sets aside GST order exceeding notice demand

The Allahabad High Court has set aside a GST adjudication order involving Svas Lifesciences Private Limited, ruling that the order exceeded the amount proposed in the original show cause notice.

The court found that the adjudication order, issued under the UPGST and Central GST Acts for the 2020-21 financial year, violated Section 75(7). This statutory provision mandates that the amount of tax, interest, and penalty demanded in an adjudication order must not exceed the amount specified in the initial notice.

Finding a fundamental illegality, the court determined the authority acted without jurisdiction by confirming a demand in excess of the notice. The matter has been remitted to the respondent to pass a fresh order following due process.