TaxTMI 
TaxTMI 
TaxTMI 
1. The normal time limit to issue SCN for FY 2018-19 has lapsed, however Department has issued SCN u/s 74 by alleging fraud and suppression on frivolous grounds to cover up the lapse of normal limitation period.
2. The following principles crucial for such matters deliberated comprehensively and held by the Honble CESTAT, New Delhi in the case of M/s GD Goenka Private Limited Versus Commissioner of Central Goods and Services Tax, Delhi South [1] argued by Adv. Pawan Arora and referred in 65+ other matters since then; can come to the rescue & ensure a conclusive defence:
- Unless there is evidence of fraud or collusion or wilful misstatement or suppression of facts or violation of the provisions of Act or Rules with an intent to evade tax, extended period of limitation cannot be invoked.
- Intentional and wilful suppression of facts cannot be presumed or merely established because-
- The Appellant was operating under self-assessment; OR
- The Appellant filed returns as per its self-assessment; OR
- The Appellant did not agree with the Audit; OR
- The Appellant has a different view about the eligibility of Credit than the Department; OR
- The Appellant did not seek any clarification from the Department; OR
- The Appellant disputed the tax deposited during Audit; OR
- Department discovered inadmissibility of credit only during Audit.
- The Appellant cannot be faulted for not disclosing information or documents which it is not required to disclose unless the Department calls for the same.
- It is the responsibility of Department to scrutinize the returns and issue SCN under Section 73 within time limit.
3. Corroborate facts with the above settled principles for putting up a strong litigative front.
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