Power And Instrumentation (Guj) Ltd. Vs Additional Commissioner Of Cgst And CE (Rajasthan High Court)
Rajasthan High Court ruled on the dispute between Power and Instrumentation (Guj) Ltd. and the Additional Commissioner of CGST and CE concerning a show cause notice issued under Section 74 of the CGST Act, 2017. Initially, the Court had permitted proceedings under Section 73, which addresses non-fraudulent tax shortfall cases. However, during subsequent investigations, the department alleged suppression of facts, prompting a notice under Section 74, which deals with fraudulent conduct. The petitioner challenged this on the grounds that the initial permission restricted action to Section 73 and that the case lacked any element of fraud or suppression.
The Court observed that its earlier orders provided liberty to the department to act under any provision of the CGST Act, not limited to Section 73. It noted that whether the case involves suppression is a matter of fact requiring further inquiry, making the challenge premature. The petitioner was directed to respond to the show cause notice, with the authorities required to evaluate the reply per legal provisions. The writ petition was dismissed, allowing proceedings under Section 74 to continue while ensuring procedural fairness.
FULL TEXT OF THE JUDGMENT/ORDER OF RAJASTHAN HIGH COURT
