The Court held that once the legislature has forbidden the adjudicating authority from confirming demand in excess of what was proposed, it can never become open to do so.
The Allahabad High Court has set aside an adjudication order under Section 74 for FY 2017-18, holding that confirming a tax demand of Rs. 25,28,400 against a SCN proposal of Rs. 16,20,000 was in gross violation of the mandatory provision of Section 75(7) [M/s Hari Motors v. State of U.P. & Anr].
The Division Bench of Justice Saumitra Dayal Singh and Justice Swarupama Chaturvedi observed that the fundamental illegality was apparent from the face of the record — the SCN proposed tax of Rs. 16,20,000 with equal penalty, but the order confirmed Rs. 25,28,400 on each count, an excess of over Rs. 9,08,400.
The Court held that Section 75(7) is mandatory in character and leaves no room for the adjudicating authority to confirm demand beyond what was proposed. No useful purpose would be served in calling for a counter affidavit.
The order was set aside and the matter remitted for fresh adjudication within three months after giving due opportunity of hearing.
2026-juristway.com-2948-HC(Allahabad)-GST | High Court of Allahabad | Writ Tax No. 4156 of 2026 | 13.10.2026
