Bharat Mint & Allied Chemicals Vs State of U.P. and another (Allahabad High Court)
SCN issued under Section 74 arising out of earlier SCN issued under Section 73 quashed as allegations of fraud, wilful misstatement or suppression of facts not invoked
The Hon’ble Allahabad High Court in the case of Bharat Mint & Allied Chemicals v. State of U.P. & Anr. [Writ Tax No. 2527 of 2025 dated May 30, 2025] held that where the proceedings were initially instated under Section 73 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) and subsequently a Show Cause Notice (“SCN”) arising out of the earlier SCN was issued under Section 74 of the CGST Act by the same officer without alleging fraud, suppression or wilful misstatement, then such an action is without jurisdiction. The Hon’ble Court quashed the subsequent SCN issued under Section 74 while allowing liberty to initiate fresh proceedings in accordance with law.
Facts:
Bharat Mint & Allied Chemicals (“the Petitioner”) was issued a SCN dated February 25, 2025 under Section 74 of the CGST/UPGST Act, by the State GST Authorities (“the Respondent”).
Prior to this, the Petitioner had received a SCN issued under Section 73 on February 20,2025. It covered ten issues, to which the Petitioner also submitted a detailed reply. However, with respect to Point Nos. 1, 6, 8, and 10, it was stated that further investigation was needed and a fresh SCN would be issued.
