HC Set Aside Penalty Order Since Demand Can’t Be Imposed on a Ground Not Mentioned in Show Cause Notice

Case Details: Associated Switch Gears and Projects Ltd. v. State of U.P. - [2024] 164 taxmann.com 782 (Allahabad)

Judiciary and Counsel Details

• Shekhar B. Saraf, J.
• Rishi Raj Kapoor for the Petitioner.
• C.S.C. for the Respondent.

Facts of the Case

The petitioner was aggrieved by the penalty order which was passed on the ground that e-way Bill had expired though the same was accompanied with goods. It filed writ petition and contended that the penalty was imposed on different ground than mentioned in the show cause notice.

High Court Held

The Honorable High Court noted that the plea which had been taken in the show cause notice at the time of detention was that the vehicle was travelling to a destination not mentioned in the invoice. However, the Appellate Authority imposed penalty on a different ground that the e-Way Bill had expired though the same was accompanied with goods.

The Court further noted that the authorities can’t transgress the boundaries of the show cause notice. The Court also noted that it has been held on numerous occasions that the authorities can’t raise any submission which were not mentioned in the show cause notice. Therefore, it was held that the impugned order imposing penalty on different ground was liable to be set aside.