Topic
Section 107 Appeal
2 articles
Indirect Tax & GST
Audit Findings and Section 74: Patna High Court Declines to Quash a Fraud-Based GST Notice and Sends the Assessee to Appeal
In Amit Agency v. Commissioner, CGST and CX, a Division Bench of the Patna High Court distinguishes G.R. Infra Projects and Tata Steel, refuses to test the sufficiency of the officer's satisfaction under Section 74(1), and directs the assessee to the appellate authority.
13 min readIndirect Tax & GST
Bona Fide Buyer, Defaulting Seller: Calcutta High Court Curbs the Mechanical Use of Section 74 to Deny GST Input Tax Credit
A logistics company claimed input tax credit on invoices from a supplier who later stopped filing returns. The department invoked Section 74's fraud-based extended period to raise a Rs. 6.3 crore demand two years after ordinary limitation had run out. The Calcutta High Court quashed the order, applying binding precedent that a buyer's credit cannot be held hostage to a seller's default, and that dressing up an ordinary demand as fraud does not extend the clock.
13 min read