Manju Devi Agarwal Vs Central Board of Indirect Taxes And Customs GST Policy Wing (Patna High Court)
GST Proceedings Under Section 74 Upheld Because Allegations of Suppression Were Never Contested; Patna HC Rejects Plea Against GST Penalty After Taxpayer Failed to File Reply to Show Cause Notice; Voluntary Tax Payment Does Not Bar Action Under Section 74 of GST Law; Patna HC Refuses Relief in GST Case Due to Alternative Appeal Remedy and Delayed Writ Filing.
In this writ petition before the Patna High Court, the petitioner challenged multiple notices and orders issued under Section 74 of the Central Goods and Services Tax Act, 2017 for the tax periods 2017-18 to 2022-23. The petitioner also challenged a CBIC circular dated 16.09.2025 and a recovery notice issued in Form GST DRC-13.
The petitioner, engaged in the business of fertilizer, cement, and pesticides, had filed statutory returns in Forms GSTR-1 and GSTR-3B. During audit and scrutiny of returns, the department noticed short payment of tax, excess availment of input tax credit, and non-payment of GST liabilities against certain receipts reflected in Form 26AS and Profit and Loss Accounts. Show cause notices dated 25.07.2024 and 31.07.2024 were issued under Sections 50 and 74 of the CGST Act alleging short payment of tax, wrongful availment of ITC, and suppression or wilful misstatement with intent to evade tax.
