SCN can be issued both under Section 73 and 74 of the CGST Act

Last updated: 18 December 2024

Quick Summary

The Punjab & Haryana High Court has ruled that the tax department can initiate proceedings under Section 74 of the CGST Act even if earlier proceedings under Section 73 were dropped. In this case, the petitioner had initially faced a notice under Section 73, which was subsequently dropped. However, the department later issued a notice under Section 74 concerning alleged wrongful availment of input tax credit. The court dismissed the petitioner's challenge, stating that proceedings under Section 74 are distinct and can be pursued independently.

Court :
Punjab & Haryana High Court

Brief :
The Hon'ble Punjab & Haryana High Court in the case of Group M. Media India (P.) Ltd. v. Union of India [Civil Writ Petition No. 28974 of 2024 (O&M) dated October 24, 2024] dismissed writ petition and held that Issuance of Show Cause Notice ("SCN") under Section 73 of the Central Goods and Services Tax Act, 2017 ("the CGST Act") and dropping proceedings would not prevent the department from independently initiating subsequent proceedings under Section 74 of the CGST Act.

Citation :
Civil Writ Petition No. 28974 of 2024 (O&M) dated October 24, 2024

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