Extended Limitation Period Under Section 74 of the CGST Act Cannot Be Invoked Without Wilful Suppression

Last updated: 31 December 2025

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The Karnataka High Court has ruled that the extended limitation period under Section 74 of the CGST Act cannot be invoked unless there is clear evidence of wilful suppression of facts with the intent to evade tax. In this case, the Revenue was aware of all the relevant details through prior proceedings, meaning the essential condition of wilful suppression was not met. Consequently, a show cause notice issued on this basis was deemed illegal and quashed.

Court :
Karnataka High Court

Brief :
The Hon'ble Karnataka High Court in the case of M/s.NCS Pearson Inc. v. Union of India & Ors. [Writ Petition No. 7635 OF 2024, order dated July 16, 2025] held that the show cause notice issued under Section 74 of the CGST Act, 2017, alleging wilful suppression to invoke an extended limitation period, was illegal and without jurisdiction as the Revenue had full knowledge of all facts from the AAR and AAAR proceedings, and the key jurisdictional fact of wilful suppression was not satisfied.

Citation :
Writ Petition No. 7635 OF 2024, order dated July 16, 2025

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Attached File : 671907_5935_ncs_pearson_inc.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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