HC Directs Assessee to Appellate Remedy in Section 74 GST Dispute

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  • Last Updated on 19 May, 2026

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Section 74 GST appellate remedy

Case Details: Tvl.Dr. M.Sundaram Hospital (P.) Ltd. vs. State Tax Officer-II (RS) - [2026] 185 taxmann.com 845 (Madras)

Judiciary and Counsel Details

  • N. Sathish Kumar & M. Jothiraman, JJ.
  • Raja Karthikeyan for the Appellant.
  • R. Suresh Kumar, Additional Government Pleader for the Respondent.

Facts of the Case

The petitioner, a private hospital providing healthcare services and operating a retail medical shop within the hospital premises, challenged assessment orders passed under section 74 of the CGST/TNGST Acts for the assessment year 2020-21. The petitioner contended that there was neither misstatement nor fraudulent intention to evade tax and, therefore, proceedings could only have been initiated under section 73 and not section 74. It was further argued that the State authorities lacked jurisdiction as the petitioner was under the administrative control of Central GST authorities. The writ petitions challenging the assessment orders were dismissed with liberty to avail appellate remedy under section 107. Aggrieved thereby, the petitioner preferred writ appeals before the High Court.

High Court Held

The High Court held that the dispute regarding invocation of section 74 involved examination of factual findings relating to suppression and intention to evade tax, which could appropriately be adjudicated only by the Appellate Authority. The Court observed that the authorities had already arrived at a finding of suppression and, if such conclusion was erroneous, the proper remedy available to the petitioner was to file an appeal under section 107 of the CGST Act. The High Court further relied upon the decision of the Supreme Court in Armour Security (India) Ltd. v. Commissioner, CGST and held that intelligence-based enforcement action could be initiated either by Central or State tax authorities irrespective of administrative assignment. It was held that the Writ Court had rightly relegated the petitioner to the appellate remedy while permitting all jurisdictional and legal grounds to be raised before the Appellate Authority. Accordingly, the writ appeals were dismissed.

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied