SCN under GST

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Mahnatesh (Querist)
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12 October 2025 In SCN if CGST is leived instaed of IGST can scn be challanged
Can department levt GST if LUT is not submitted .Any case LAws

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 October 2025 Yes, a Show Cause Notice (SCN) can be challenged if CGST is levied instead of IGST in a situation where the correct tax should have been IGST, or vice versa.
If a SCN is issued alleging fraud, collusion, or suppression of facts (under Section 74), the department bears the burden to prove such intent. If such intent does not exist, the notice can be challenged on grounds of absence of fraud or misstatement.
SCN can be challenged in reply before the adjudicating authority and, if necessary, through a writ petition before the High Court, especially if the demand is without basis or beyond jurisdiction.
Taxpayers have successfully challenged such SCNs where departmental officers incorrectly classified the supply, resulting in wrong tax head demands, or imposed penalties and interest erroneously.
The procedural remedy includes adjustment or refund of wrongly paid taxes, and payment under the correct head as per GST law.

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