The Allahabad High Court has set aside a massive tax demand raised against M/s Make My Trip India Private Limited, holding that the authorities cannot go beyond the scope of the show cause notice.
The bench of Justice Shekhar B. Saraf and Justice Abdhesh Kumar Chaudhary was hearing a writ petition challenging an order dated December 30, 2025, whereby a demand of over Rs. 12.04 crore was raised for the financial year 2021–22.
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The dispute arose from a show cause notice issued under Section 73 of the GST Act on September 30, 2025. Notably, the notice only proposed recovery of a nominal interest amount of ₹2,358. However, the final order imposed a substantially higher demand, including tax, penalty, and interest aggregating to several crores.
The petitioner contended that such a drastic escalation was in clear violation of Section 75(7) of the GST Act, which expressly provides that the amount of tax, interest, and penalty confirmed in the order cannot exceed what is specified in the show cause notice. It was argued that the adjudicating authority had travelled beyond the notice, rendering the entire demand unsustainable.
On the other hand, the State defended the demand, arguing that levy of interest and penalty is statutory in nature and can be imposed even if not specifically quantified in the notice.
Rejecting the State’s arguments, the Court emphasized the mandatory nature of Section 75(7). It observed that the statutory provision clearly restricts the adjudicating authority from confirming any demand exceeding the amount specified in the show cause notice or based on grounds not mentioned therein.
The Court noted that while the notice mentioned only ₹2,358, the final demand of over ₹12 crore was “ex facie contrary” to the law. Such an approach, the bench held, violates principles of natural justice and statutory safeguards embedded in GST adjudication.
Accordingly, the High Court quashed the impugned order and remanded the matter back to the adjudicating authority. It directed that a fresh order be passed after providing the petitioner with a proper opportunity to respond and be heard.
Case Details
Case Title: M/S Make My Trip India Private Limited Versus State Of U.P.
Citation: JURISHOUR-844-HC-2026(ALL)
Case No.: WRIT TAX No. – 509 of 2026
Date: April 2, 2026
Counsel For Petitioner: Surangama Sharma
Counsel For Respondent: C.S.C.
