Extended limitation under GST Section 74 sustained where excess input tax credit and suppression indicated tax evasion.

Prima facie wrongful availment and utilisation of input tax credit beyond GSTR-2A, together with material indicating suppression of facts and intent to evade tax, justified invocation of the extended limitation period under Section 74 of the GST enactments. The Court rejected the limitation challenge, noting that the threshold for invoking Section 74 is lower than under the earlier indirect tax regime, and also referred to indications of non-discharge of reverse charge liability on commissions received from foreign booking agencies. The impugned orders were sustained and the writ petitions were dismissed, leaving the assessee to pursue the statutory appellate remedy on merits.

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Issues: Whether the impugned orders passed under Section 74 of the GST enactments were liable to be quashed on the grounds of limitation and absence of the ingredients necessary for invoking the extended period.

Analysis: The assessee had availed input tax credit in excess of the amounts reflected in GSTR-2A and used it to discharge liability in GSTR-3B. The Court found prima facie suppression of facts with an intention to evade tax and held that the threshold for invoking the extended period under Section 74 is lower than under the earlier indirect tax regime. The challenge on limitation was also rejected in light of the earlier decision relied upon by the Court, and there were indications of non-discharge of tax under reverse charge mechanism on commissions received from foreign booking agencies.

Conclusion: The challenge to the orders under Section 74 failed and the writ petitions were dismissed.

Final Conclusion: The Court upheld the proceedings and left the assessee to pursue the statutory appellate remedy on merits.

Ratio Decidendi: Prima facie wrongful availment and utilisation of input tax credit, coupled with material indicating suppression and tax evasion, justified invocation of the extended limitation under Section 74 of the GST enactments and sustained the impugned proceedings.

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