Show-cause notice under Section 74 U.P.G.S.T. Act quashed for failing to allege fraud, willful misstatement or suppression

HC held the show-cause notice issued under s. 74 of the U.P.G.S.T. Act, 2017 did not plead the requisite ingredients of fraud, willful misstatement or suppression of facts to evade tax, and therefore quashed and set aside the SCN dated 20.06.2025. The Department was granted liberty to proceed under any other provision of the U.P.G.S.T. Act in accordance with law, and the petition was disposed.

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Writ petition under Article 226 challenged the show cause notice dated 20.06.2025 issued under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017. Petitioner contended the notice was "bereft of the ingredients of Section 74" that require evidence of fraud, willful misstatement and suppression of facts to evade tax. On perusal, the court found the contention correct and observed the notice "does not contain the necessary prerequisites that are required to issue a show cause notice under Section 74 of the U.P.G.S.T. Act." Consequently the show cause notice dated 20.06.2025 was quashed and set aside, with liberty to the Department to proceed under any other provision of the U.P.G.S.T. Act "in accordance with law." Writ petition disposed accordingly.

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