Tag: sec. 74 of cgst act

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

Investigation findings are not binding on adjudicating authority, and to be decided through proper adjudication

byCA Bimal Jain

The Hon’ble High Court of Madhya Pradesh in the case of M/s Study Metro Edu Consultant Pvt. Ltd. through its Authorised Signatory Abhishek Bajaj held that the imprint of the Investigating Authority under Section 74(9) of the CGST Act does not bind the adjudicating authority; services rendered to foreign universities should be adjudicated independently under the proper classification and place of supply rules, and the petitioner’s writ petition is dismissed.

ArticleGST Article

SCN issued under Section 74 arising out of earlier SCN issued under Section 73 quashed as allegations of fraud, wilful misstatement or suppression of facts not invoked

byCA Bimal Jain

The Hon’ble Allahabad High Court in the case of Bharat Mint & Allied Chemicals held that where the proceedings were initially instated under Section 73 of CGST Act and subsequently a SCN arising out of the earlier SCN was issued under Section 74 of the CGST Act by the same officer without alleging fraud, suppression or wilful misstatement, then such an action is without jurisdiction…