GST Notice under Section 74 can not be issued just mentioning of mismatch in GST Returns : High Court

By | October 25, 2021
(Last Updated On: October 25, 2021)

Notice under Section 74 can not be issued just mentioning of mismatch in GST Returns

 Facts of the case

GST officer raised demand under section 74 because There is mismatch between GSTR-3B and GSTR 2A,

A summary of show-cause notice as issued in Form GST DRC-01 in terms of Rule 142(1) of the JGST Rules, 2017

  Decision by High Court

The concept of reasonable opportunity includes various safeguards and one of them is to afford opportunity to the person to deny his guilt and establish his innocence, which he can only do if he is told what the charges leveled against him are and the allegations on which such charges are based.

If the allegations in the show-cause notice are not specific and are on the contrary, vague, lack details and/or unintelligible i.e. its sufficient to hold that the noticee was not given proper opportunity to meet the allegations indicated in the show-cause notice.

Although it has been mentioned that there is mismatch between GSTR-3B and 2A, but that is not sufficient as the foundational allegation for issuance of notice under Section 74 is totally missing and the notice continues to be vague.

The impugned notice and the summary of show-cause notice in Form GST DRC-01 are quashed.

Download Judgment Click here

Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

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