Tata Steel Limited Vs Union of India (Supreme Court of India)
SC stays Section 74 of the CGST Act proceedings Flagging Jurisdictional and Natural Justice Concerns, despite having Alternate Remedy
The Supreme Court in the case of Tata Steel Limited v. Union of India & Ors. [Special Leave Petition (C) No. 16859 of 2026 dated May 19, 2026], in a challenge arising from proceedings under Section 74 of the CGST Act, issued notice and stayed further proceedings connected with an Order-In-Original alleging wrongful availment of Input Tax Credit on account of fraud, wilful misstatement and suppression of facts. The petitioner had challenged the Jharkhand High Court judgment which refused to entertain a writ petition on the ground of availability of a statutory appellate remedy. The petitioner argued that the jurisdictional ingredients required under Section 74 were absent and that the proceedings suffered from violations of natural justice because the show-cause notice was based on an audit report allegedly disputed by the Revenue and the matter was recalled from the Call Book only to avoid limitation. The Supreme Court noted that a similar issue concerning alternate remedy and Section 74 proceedings was already pending in another Special Leave Petition. The Court directed that the matter be tagged with the pending case and ordered stay of further proceedings till the next hearing, subject to satisfaction that both matters involve similar issues.
