Tag: Allahabad HC

ArticleGST Article

Section 74 of the CGST can be invoked only upon clear demonstration of fraud, wilful misstatement, or suppression of facts with intent to evade tax

byCA Bimal Jain

The Hon’ble Allahabad High Court in the case of SafeconLifescience Private Limited held that proceedings under Section 74 of the UPGST Act cannot be sustained unless there is evidence of fraud, wilful misstatement, or suppression of fact to evade tax. The Court quashed orders passed merely on the basis of unverified intelligence reports and supplier registration cancellation, reiterating the necessity for mens rea and strict compliance with CBIC’s instruction dated December 13, 2023.

ArticleGST Article

No bar of ITC for the buyer when the supply is genuine and supplier was active and registered on  invoice date

byCA Bimal Jain

The Hon’ble Allahabad High Court in the case of M/s Kesarwani Traders v. State of U.P. & Others [Writ Tax No. 1235 of 2025, order dated August 18, 2025] held that subsequent cancellation of the supplier’s GST registration cannot by itself be the ground for denial of ITC if the supplier was registered on the date of invoice and the transaction is genuine, an adverse inference against the buyer was unjustified.

ArticleGST Article

No Provisions in GST Law for remand back by First Appellate Authority

byCA Bimal Jain

The Hon’ble Allahabad High Court in the case of M/s Kanha Shree Steels held that once an appellate authority finds a show cause notice and cancellation order deficient for lack of reasons, it cannot remand the matter back for verification; the appellate authority under Section 107 of the CGST Act cannot grant a “second inning” to Revenue by referring cases back to the adjudicating authority.