GST DAILY – 455 : Cash seized by GST authority to be released due to lack of power to seize cash from dealer’s premises: HC
THE HON’BLE KERALA HIGH COURT IN THE CASE OF Centre CEd tech Pvt. Ltd. V/s Intelligence Officer, Off intelligence Unit,…
Tag: sec. 74 of cgst act
GST DAILY – 447 : Order to be set aside as SCN & order were only uploaded on GST portal and not served through any other means: HC
THE HON’BLE MADRAS HIGH COURT IN THE CASE OF T.B. Sabrish V/s Assistant Commissioner (ST), decided on 20-12-2024
GST DAILY – 438 : Stay on SCN issued under Section 74 was granted due to lack of instances of wilful suppression, misstatement, or fraud: HC
THE HON’BLE GAUHATI HIGH COURT IN THE CASE OF BhagyaKalita V/s Union of India, decided on 25-11-2024
GST DAILY – 434 : Order to be set aside as the assessment was made against a deceased person: HC
THE HON’BLE ALLAHABAD HIGH COURT IN THE CASE OF Upmanyu Kattha Industries V/s State of U.P., decided on 9-1-2025
GST DAILY – 428 : Order to be set aside due to reliance on a quashed SCN with procedural deficiencies: HC
THE HON’BLE TELANGANA HIGH COURT in the Case of Sree Krishna Automotives V/s Deputy Commissioner of State Tax, decided on 12-12-2024
Two major reasons why Litigation is on an increasing trend in GST.
Firstly, notices are invariably issued under Section 74 and post this, even if matter gets dropped on merit at Adjudication, Appeal is filed under Section 107(2).
Cross-Empowerment under Section 6 of the CGST Act is Automatic and Intelligence-Based Enforcement is valid regardless of Taxpayer Assignment
The Hon’ble High Court of Jammu and Kashmir and Ladakh in the case of in R.K. Ispat Ltd. held that cross-empowerment under Section 6 of the CGST Act is automatic and does not require a separate government notification unless conditions are imposed; intelligence-based enforcement actions can be initiated by either Central or State authorities regardless of taxpayer assignment; the Joint Commissioner is competent to issue show cause notices even when amounts involved are below Rs. 1 crore; and bunching of show cause notices across multiple assessment years under Section 74 is not expressly prohibited.
GST DAILY – 401 : No bar in issuing SCN under Sec. 74 even if proceedings initiated earlier u/s 73 were dropped
THE HON’BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF Group M. Media India Pvt. Ltd. V/s Union of India, decided on 24-10-2024
GST DAILY – 397 : Provisions of section 74 cannot be invoked for GST return mismatch in absence of fraud, wilful misstatement or suppression: HC
Xiaomi Technology India Pvt. Ltd. V/s Additional Commissioner, CGST, West Delhi
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
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.