Ajnara Realtech Limited Vs State of Uttar Pradesh And 3 Others (Allahabad High Court)

Allahabad High Court has quashed a show cause notice and subsequent ex parte order issued under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017, against Ajnara Realtech Limited. The petitioner had challenged the notice dated June 3, 2024, and the order dated February 3, 2025, for the financial year 2017-18.The High Court observed that both the show cause notice and the final order failed to adhere to the mandatory ingredients of Section 74, specifically lacking any allegation of fraud, willful misstatement, or suppression of material facts. The court found the order “bereft of any reasons” for invoking Section 74.Relying on its own judgment in HCL Infotech Ltd. vs. Commissioner, Commercial Tax (2024) 23 Centax 71 (All.), the High Court set aside the impugned notice and order. The authorities have been granted the liberty to proceed in accordance with the law.