Limitation and wilful suppression challenge leads to interim stay of CGST show-cause proceedings

Proceedings under a show-cause notice issued under the CGST Act were challenged on the basis that the limitation period under Section 73 had expired and that wilful suppression was not made out for invocation of Section 74. The respondents said those objections could be raised before the assessing authority, and the matter remained pending for further hearing. Pending that hearing, the High Court granted protective relief and stayed further proceedings under the impugned notice for six weeks.

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Issues: Whether the proceedings initiated under the impugned show-cause notice under Section 74 of the Central Goods and Services Tax Act, 2017, warrant interim stay in view of the petitioner's objection regarding limitation under Section 73 and the absence of wilful suppression.

Analysis: The Court noticed the petitioner's challenge to the invocation of Section 74 on the ground that the limitation under Section 73 had expired and that the allegation of wilful suppression was disputed. The respondents sought time to file a counter and contended that the objections could be raised before the assessing authority. Pending further hearing, the Court granted protective relief.

Outcome: Further proceedings in relation to the impugned show-cause notice were stayed for six weeks.

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