Section 74 applies only where fraud or intent to evade tax is established. Vague notices based on mismatches lack jurisdiction and are unsustainable.
Courts have held that bona fide recipients cannot be penalised for supplier defaults. Using Section 64 against compliant buyers is disproportionate and legally vulnerable.
The Karnataka High Court’s GST ruling adopts the Supreme Court’s “arrest is an exception” framework for offences up to seven years, but it goes further in emphasis by treating non‑requirement of custodial interrogation in GST cases up to five years as a strong—almost default—reason to grant anticipatory bail, whereas Supreme Court precedents treat that factor […]
The Karnataka HC ruled that taxpayers accused of GST offences with maximum punishment under five years need not face mandatory custodial interrogation, even in large fake ITC cases.
