Notice U/s 74(1)

This query is : Resolved

Kunal Pansari & Co. (Querist)
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29 February 2024 We have been issued a notice U/s 74(1) for violation of Section 16(4) for the FY 2018-2019.
The due date of availing ITC for the FY 2018-2019 was 20-10-2019 but our March 2019 GSTR-3B was filed on 22-10-2019
The department has imposed a Tax of Rs. 414816.33 and also the additional penalty of Rs. 414816.33 which makes it total of Rs. 829633.
Now we have 2 questions :
1. Can notice be issued U/s 74(1) for merely violation of Section 16(4) because in my opinion it is not a willful evade of taxes.
2. Can Notification No. 18/2022 dated 28-09-2022 which increase the time limit to avail ITC to 30th of November used to avail ITC of FY 2018-2019

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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01 March 2024 1. in your case show cause notice under section 74 is not acceptable. It appears that in your case it has been issued under this section either because of time limit to issue notice under sec 73 has expired and notice has been issued thereafter or the officer has issued such notice without application of mind. You can contest the issuance of SCN under section 74 at the inception stage itself and ask for justification for the same as there is no fraudulent intention involved.
2. No the notification for extension of time limit to avail ITC does not apply to FY 2018-19.

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