2025 (3) TMI 362 - HC - GST

Issuance of consolidated SCN by invoking the provisions of Section 74 of the CGST/SGST Acts for the years 2017-18 till 2021-22 - HELD THAT - Having regard to the facts and circumstances of the case the writ petition will stand disposed of directing that the Competent Authority shall consider the issue for each of the years separately if there is warrant for doing so also taking into consideration the submission of the petitioner that there was no just cause or reason to invoke the provisions of Section 74 of the CGST/SGST Acts for the years 2018-19 till 2021-22. Any taxes paid by the petitioner shall also be given due credit to while finalizing the proceedings. It is made clear that the petitioner shall be afforded an opportunity of personal hearing before orders are passed by the Adjudicating Authority. Petition disposed off.

Summary

The petitioner challenged the issuance of a consolidated show cause notice under Section 74 of the CGST/SGST Acts for the years 2017-18 to 2021-22. The petitioner argued that although there was a failure to file returns in 2017-18, subsequent returns were filed with tax remitted at 5%, and any mistake in the tax rate should not warrant invoking Section 74 for the later years. The government pleader stated that orders will be finalized separately for each year, considering the petitioner's contentions, and taxes already paid will be credited. The court directed the Competent Authority to assess each year separately, taking into account the petitioner's arguments against invoking Section 74 for the later years. The petitioner will have a personal hearing before final orders are issued.