Safecon Lifescience Private Limited Vs Additional Commissioner Grade 2 And Another (Allahabad High Court)
Proceedings u/s. 74 of CGST Act cannot be invoked without fraud or willful mis-statement to evade payment of tax: Allahabad High Court
Allahabad High Court held that initiation of proceedings under section 74 of the Central Goods and Services Tax Act [CGST Act] is not tenable in law since no findings is recorded which shows that there is fraud or willful mis-statement or suppression of fact to evade payment of tax.
Read SC Judgment in this case: SC Dismissed SLP Against Quashing of Section 74 GST Proceedings for ITC Denial
Facts- The petitioner is engaged in trading and manufacturing business, mainly of all kinds of medicines/ pharma products on wholesale basis. They purchased medicines/ pharma products from M/s Unimax Pharma Chem, Purana Taluka Bhiwandi, Thane and at the time of supply it was in existence and duly registered with the GST department as well as Drug License Holder. The transaction of purchases made by the petitioner from the Maharashtra Party for the tax period April, 2021 which was against the Tax Invoice dated 30.4.2021 and E-way bill and transport bill of M/s Vinay Road Lines Pvt. Ltd. The whole payments of purchases were made through banking channel and the supplier also submitted his GSTR-1 and GSTR-3B within the time on GST Portal after making due tax on the turnover made by the supplier.
