M/S Bhagya Kalita vs. Union Of INDIA And 6 Ors
Held
The Court held that the invocation of Section 74(1) was unwarranted as the revenue authorities failed to establish a conclusive finding of willful and deliberate evasion, fraud, or suppression of facts, which are essential preconditions for applying the extended period of limitation under this section. The show cause notice was deemed invalid and quashed.
Facts
A contractor received price adjustments for a works contract awarded pre-GST (2010) but completed post-GST (2020). Due to confusion regarding GST liability on this adjustment, it was declared as exempted in the annual return. The revenue authorities subsequently issued a show cause notice under Section 74(1) of the CGST Act, 2017, for recovery of GST, penalty, and interest.
Key Issues
Whether the revenue authorities were justified in invoking Section 74(1) of the CGST Act, 2017, for demanding GST, penalty, and interest, without conclusively establishing willful misstatement, suppression of facts, or fraud on the part of the assessee.
Sections Cited
Section 74(1), Section 73, CGST Act, 2017
AI-generated summary — verify with the full judgment below
GAHC010242052024
IN THE GAUHATI HIGH COURT
(HIGH COURT OF ASSAM, NAGALAND, MIZORAM & ARUNACHAL PRADESH) PRINCIPAL SEAT W.P(C) NO. 6154/2024 M/S Bhagya Kalita A proprietorship concern, having its office at 5th Floor, BEE KEY Tower, R.P. Road, Ganeshguri, Dispur, Kamrup (M), Assam, PIN 781006, represented by Sri. Bhagya Kalita, aged about 74 years, residence of P.P Road, Rehabari, Guwahati-781008
……..Petitioner
-Versus-
Union of India Represented by its Secretary, Ministry of Finance, Department of Revenue, New Delhi-110 001
The Principal Commissioner, Office of the Principal Commissioner, CGST Commissionerate, Guwahati, GST Bhawan, Kedar Road, Machkhowa, Guwahati-781 001, Assam
Commissioner CGST,
Central Tax Commissionerate, GST Bhawan, Kedar Road, Machkhowa, Guwahati-781001
The Director General, Central Ecenomic Intelligence Bureau (CEIB), New Delhi.
The Joint Director, Directorate General of Goods and Service Tax, Intelligence, Guwahati Zonal Unit, House No. 77, Rupkonwar Jyoti Prasad Agarwalla Road, Opposite Shankardev Kalakhetra, P.O. Panjabari, Guwahati, Assam, PIN 7
The judgment continues below.
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