Interest cannot be imposed in adjudication order, if not demanded/ quantified in Show Cause Notice
Last updated: 16 April 2026
Court :
Allahabad High Court
Brief :
The Hon'ble Allahabad High Court in the case of M/s Sanjay Construction through Authorized Representative Shivendra Kumar v. State of Uttar Pradesh &Anr. [Writ Tax No. 161 of 2026, order dated February 17, 2026] held that interest liability cannot be imposed in the adjudication order when the show cause notice did not quantify or demand such interest, as it would violate Section 75(7) of the GST Act. The Court further held that Section 75(9) does not permit imposition of interest beyond what is specified in the show cause notice. Consequently, the impugned order and show cause notice were quashed with liberty to issue a fresh notice in accordance with law.
Citation :
Writ Tax No. 161 of 2026, order dated February 17, 2026
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Bimal Jain
Published in GST
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