Facts of the Case: The petitioner, a government contractor, was subjected to an assessment order dated 08.01.2025 passed under Section 74(9) of the U.P. GST Act, 2017, demanding GST along with interest and penalty. The petitioner earlier challenged this assessment order which was disposed of on 22.04.2025 by holding that the order was appealable under Section 107 and that writ jurisdiction could not be invoked. Liberty was granted to pursue remedies under law.
Instead of filing an appeal, the petitioner again approached the High Court seeking a mandamus directing the Government to decide his representation based on circulars/notifications and to permit payment of tax without recovery of interest and penalty.
Issue: Whether the High Court, in exercise of writ jurisdiction, can direct the Government to decide the petitioner’s representation and waive statutory liability of interest and penalty imposed by the assessment order, despite availability of a statutory appeal under Section 107.
Held that:
The Court held that the State Government cannot be directed to act contrary to statutory provisions and withdraw demand of interest and penalty when the assessment order dated 08.01.2025 has not been set aside by any competent forum.
Since the order was passed under Section 74(9), the proper course of action for the petitioner is to file an appeal under Section 107 of the U.P. GST Act. The earlier writ petition already clarified this position, and filing a representation to the Government does not override statutory remedies.
Therefore, the Court clarified that a representation to the Government cannot substitute the statutory appellate remedy under Section 107 of the GST Act. Once an assessment order is passed, interest and penalty liability cannot be waived through writ jurisdiction unless the order is set aside by the competent appellate forum.
Case Name: M/s Shree Dev Builders And Construction Pvt. Ltd. Thru. Director Mr. Gaurav Singh Versus State Of U.P. Thru. Addl. Chief Secy. /Prin. Secy. Rural Engineering Deptt. And 10 Others dated 08.09.2025
To read the complete judgement 2025 Taxo.online 2274
