2026-VIL-156-GSTAT-KLK
  1. Home
  2. 2026-VIL-156-GSTAT-KLK

SGST Tribunal

GST – Invocation of Section 74(1) of the CGST Act, 2017 for delayed payment of tax, belated filing of return in Form GSTR-3B and short payment of interest – Show cause notice to the Respondent-assessee demanding tax paid beyond the due date along with interest and penalty under Section 74, although the Respondent had deposited the self assessed tax and interest and uploaded the return before the proceedings were drawn up. The short paid interest was also paid through Form DRC-03 before the notice - Adjudicating authority confirmed the demand and imposed penalty, but the first appellate authority set aside the order, holding that there was no proof of fraud, wilful misstatement or suppression of facts to evade tax – Appellant-Revenue contended that belated payment of tax and short payment of interest amounts to fraud contemplated under Section 74 - Whether the Revenue has been able to make out a case under Section 74 of the CGST Act in the given facts - HELD - Section 74(1) can be invoked only where tax has not been paid or short paid by reason of fraud, or any wilful misstatement or suppression of facts to evade tax, which requires a deliberate intention on the part of the taxpayer to evade tax, and cannot be invoked merely on account of non-payment of GST without a specific element of fraud or wilful misstatement or suppression of facts – Further, the Supreme Court in M/s Tata Steel Limited case held that the foundational facts which led to the inference of fraud, wilful misrepresentation or suppression should be evident from the notice itself, and the words are not to be mechanically recited in the notice to enable recovery outside the normal limitation. The show cause notice lacked such foundational facts - The First Appellate Authority was correct in holding that it was not a fit case for invocation of Section 74(1), there is no reason to interfere with its order, and the appeal of the Revenue is dismissed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?