Section 74 Demand Set Aside Where Turnover Appears Prima Facie Below GST Registration Threshold and Opportunity of Hearing Denied

Last updated: 30 June 2026

Save Share

Quick Summary

The Madras High Court has overturned a tax and penalty demand issued under Section 74 of the CGST Act. The court found that the demand was made without providing the assessee, Abirami Agro Agencies, an opportunity to be heard, violating principles of natural justice. Furthermore, the authorities' assessment of the company's turnover appeared to be below the threshold required for GST registration, making the demand itself questionable.

Court :
Madras High Court

Brief :
The Hon’ble Madras High Court in M/s. Abirami Agro Agencies v. The State Tax Officer & Ors. [W.P. No. 18444 of 2026 and W.M.P. Nos. 19783, 19785 & 19786 of 2026 dated June 04, 2026] set aside the order raising tax and penalty under Section 74 of the Central Goods and Services Tax Act, 2017 ( “the CGST Act” ) and remanded the matter for fresh consideration, holding that the impugned order was passed without granting an opportunity of hearing to the Assessee and that the turnover recorded by the GST authorities appeared prima facie to be below the threshold prescribed for registration under the GST law.

Citation :
W.P. No. 18444 of 2026 and W.M.P. Nos. 19783, 19785 & 19786 of 2026 dated June 04, 2026

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

Attached File : 671907_6029_madras_hc_abirami_agro_agencies.pdf

downloaded 104 times

127 Views Comment Share GST Report

Judgement posted by

Bimal Jain

Service

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

View Judgements

Comments