- The Supreme Court held that the GST Department cannot use Section 74’s extended limitation period unless it specifically pleads and supports fraud, wilful misstatement, or suppression of facts with real foundational facts.
- In Tata Steel’s case, the normal 3-year limitation under Section 73 had already expired, so the June 13, 2025 SCNs were time-barred unless Section 74 was properly invoked.
- Mere audit objections, generic allegations, or copy-pasting statutory language are not enough; the Assessing Officer must independently apply mind.
- The Court also said the GST Act does not allow “protective demands” or keeping notices in a call book just because limitation is near.
- The SCN and resulting order were quashed, but the Department may start fresh Section 74 proceedings if legally justified and completed by February 28, 2027.
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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