The Allahabad High Court has set aside the adjudication order for FY 2021-22 where the demand confirmed far exceeded the demand proposed in the show cause notice, calling it a “fundamental and incurable flaw” under Section 75(7) of the Act.
The SCN proposed a demand of Rs. 54,63,216.28 on account of GSTR-3B vs. GSTR-2B mismatch and Rs. 15,09,56,460.22 on account of outward supply discrepancy. The adjudicating authority confirmed Rs. 2,15,11,596 and Rs. 18,32,31,808 respectively — far exceeding the proposed amounts.
The court held this was a clear violation of Section 75(7) which mandates that the demand confirmed may never exceed the demand proposed. The court declined to grant the Revenue a further opportunity to issue a fresh notice, holding this would amount to “granting the revenue authorities a second or a third innings.”
M/s Dell International Services India Pvt. Ltd. v. State of U.P. & Another | Writ Tax No. 3409/2026 | 21 August 2026 | Allahabad HC