The Hon’ble Allahabad High Court in the case of M/s Jay Dee Enterprises v. Deputy Commissioner State Tax SGST & Anr. [Writ Tax No. 2908 of 2026 dated July 06, 2026] set aside the adjudication order passed under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017 (“the UPGST Act”) imposing penalty of Rs. 9,21,084/- as against penalty of Rs. 4,60,542/- proposed in the Show Cause Notice, and held that there is a clear prohibition under the Act to confirm tax or penalty liability in excess of that proposed in the show cause notice, and any confirmation of demand in excess thereof constitutes a jurisdictional error in view of the mandatory provisions of Section 75(7) of the UPGST Act. Accordingly, the matter was remanded back to the Adjudicating Authority for passing a fresh order after affording due opportunity of personal hearing to the Assessee.
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