S.S. Infrazone Pvt. Ltd. Lko Vs State of U.P (Allahabad High Court)
Summary: The Allahabad High Court, Lucknow Bench, considered a writ petition filed by M/S S.S. Infrazone Pvt. Ltd. Lko. challenging a show cause notice dated 30 April 2026 issued under Section 74 of the SGST/CGST Act, 2017 for the tax period 2020-21. The petitioner invoked the writ jurisdiction of the Court under Article 226 of the Constitution of India and sought a writ of certiorari quashing the notice on the ground that it suffered from patent lack of jurisdiction and was otherwise without jurisdiction.
The petitioner’s principal challenge was directed at the invocation of Section 74. On examination of the impugned show cause notice, the Court found that it did not contain the ingredients required under Section 74 in relation to fraud, wilful misstatement or suppression of material facts with the intent to evade tax. The Court therefore treated the absence of these ingredients in the notice as material to the jurisdiction to proceed under Section 74. Section 74 concerns determination of tax not paid or short paid, erroneously refunded, or input tax credit wrongly availed or utilised by reason of fraud, wilful misstatement or suppression of facts. A TaxGuru publication reproducing and explaining Section 74 is available.
