G.R. Infra Projects Limited Ratlam Vs State of Madhya Pradesh & Ors. (Supreme Court of India)
Summary: The Supreme Court considered the Show Cause Notice dated 13.06.2025 issued for assessment year 2018-19 and whether it could be treated as a notice under Section 74 of the CGST Act read with the MPGST Act. The appellant submitted that Section 74 requires an allegation of fraud, wilful misstatement or suppression of facts to emerge from the notice itself. The Court noted that the notice was issued after the Section 73 limitation period had expired, taking into account the extension of time arising from Re: Cognizance for Extension of Limitation. It refused to consider the Revenue’s counter affidavit for supplying requirements absent from the notice. The Court found that the SCN contained only a bland statement of “fraud or concealment of facts” without explaining how fraud was inferred or concealment detected, and observed that the mechanical use of statutory expressions was insufficient. The Supreme Court accordingly set aside the impugned High Court order and the SCN and directed the respondent-State to desist from taking further proceedings pursuant to it.
Key Issue:
Impact of vague SCN issued under GST law held invalid and barring any tax recovery on its basis. Revenue can’t improvise impugned notice /order infirm through subsequent counter affidavit etc
