GST Show Cause Notices Upheld: Financial Hardship Claims Rejected, Statutory Remedies Affirmed Under Section 74

HC dismissed writ petition challenging GST show cause notices. Despite petitioner's claims of financial difficulties from land acquisition, court found tax proceedings finalized and alternative statutory remedies available. Petitioner's challenge to notices u/s 74 of CGST Act was rejected, allowing standard legal recourse through established channels.

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Issues involved:
The writ petition to quash show cause notices u/s 74 of the CGST Act issued by the third respondent.

Judgment Details:
The petitioner, a private limited company in crop products, faced financial difficulties due to land acquisition proceedings, impacting tax payments. Despite paying income tax dues, discrepancies in GST returns led to show cause notices Exts P10 to P12 u/s 74(5) of the CGST Act. Replies were submitted (Exts P13 to P15), followed by more notices (Exts P16 to P19) due to delays in compensation. The third respondent issued notices (Exts P22 to P24) for interest and penalty recovery. The petitioner denied tax evasion, citing the acquisition's financial strain. The court heard arguments from both sides, with the petitioner claiming non-finalization of proceedings by respondents 2 & 3, rendering them remediless. However, evidence showed finalization of proceedings as of 22.10.2021. The court, considering the orders passed and the petitioner's alternative statutory remedy, dismissed the writ petition, allowing for statutory remedies to be pursued in accordance with the law.

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