Ayyappan Pillai Vs State Tax Officer (Kerala High Court)
In Ayyappan Pillai Vs State Tax Officer, the Kerala High Court examined the petitioner’s challenge against the invocation of Section 74 of the CGST/SGST Act. The petitioner was served with a show cause notice for alleged suppression of sales, resulting in tax evasion. The petitioner contested the use of Section 74, claiming the suppression was not willful, and that the notice was factually incorrect. However, the Court found that there were sufficient grounds to invoke Section 74, as discrepancies in stock and unaccounted sales pointed to potential tax evasion. Additionally, the Court dismissed the petitioner’s rectification request under Section 161, as he failed to provide necessary evidence. The Court rejected the petition, noting that disputed facts should be adjudicated by the relevant statutory authorities. Nonetheless, the period during which the petitioner sought rectification was excluded for calculating the limitation period for filing an appeal.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The petitioner is a registered person under the CGST / SGST Acts. The petitioner was served with Ext.P3 show cause notice under Section 74 of the CGST Act calling upon the petitioner to show cause as to why certain proposals should not be finalized against the petitioner. The petitioner submitted Ext.P4 reply. After considering the reply submitted by the petitioner and after affording to the petitioner an opportunity of being heard, Ext.P5 order was issued by the 2nd respondent confirming the proposals in the show cause notice and finalizing a demand against the petitioner. The petitioner filed Ext.P6 application for rectification under Section 161 of the CGST Act, which was considered and rejected by Ext.Pio order. The petitioner is thus before this Court challenging Exts.P5 and Pio orders on various grounds.
