Stay Granted as SCN Did Not Reflect Instances of Wilful Suppression, Misstatement, or Fraud | HC

Case Details: Bhagya Kalita v. Union of India - [2025] 170 taxmann.com 54 (Gauhati)

Judiciary and Counsel Details

• Soumitra Saikia, J.
• R. Sarmah, K.J. Hazarika, Ms M. Kakoty & P.K. Goswami, Advs. for the Petitioner.
• Dy. S.G.I., SC, NHAI, SC, PWD (NH), SC and Finance, Advs. for the Respondent.

Facts of the Case

The petitioner received a show cause notice (SCN) from the GST department proposing demand under Section 74. It filed writ petition to challenge the SCN on the ground that there was no wilful suppression, misstatement or fraud and the amount paid by the petitioner was clearly acknowledged in the portal of the department.

High Court Held

The Honorable High Court noted that as per the Circular No. 5/2023-GST dated 13-12-2023, the mere failure to pay appropriate GST would not be considered as a ground for invocation of Section 74(1) of CGST Act, 2017. However, the perusal of the SCN did not reflect that the invocation of the jurisdiction under Section 74 of the CGST Act was considered as a situation outside the purview of the circular.

Therefore, the Court held that the notice was to be issued but the further proceedings pursuant to SCN would be stayed. The Court also directed the department to file its reply.