section 74

[VINODRAJ ERUVAT]

A single show cause notice under Section 74 was issued for the years 2017-18, 2018-19, 2019-20, 2020-21, and 2021-22, with separate DRC-01s and ARNs for each year. Due to a time-bar issue, the ARN for the year 2017-18 was verified, and an order was passed for 2017-18 with DRC-07 under Section 74.

1. How should the remaining cases for the years 2018-19, 2019-20, 2020-21, and 2021-22 be proceeded with?
2. Is it possible to change the notice issued under Section 74 to Section 73?
3. The Hon'ble High Court has directed consideration of the petitioner’s submission that there was no just cause or reason to invoke the provisions of Section 74 of the CGST/SGST Acts for the years 2018-19 to 2021-22 because the dealer remitted the complete tax amount after obtaining the show cause notice. The case was invoked due to a difference in the tax rate, i.e., 5% instead of 12%. In this scenario, can Section 74 be changed to Section 73?

AI Summary

Debate on Reclassifying GST Show Cause Notice from Fraud (Section 74) to Non-Fraud (Section 73) After Tax Payment A discussion on a forum revolves around a show cause notice issued under Section 74 of the GST Act for multiple financial years. The notice, initially issued for fraud or suppression, is questioned for its applicability, as the taxpayer had already remitted the taxes. Participants debate whether the notice can be changed to Section 73, which deals with non-fraud cases. Some argue that once issued under Section 74, it cannot be changed, while others suggest fair justice allows for reclassification under Section 73 without issuing a new notice. The discussion references legal precedents and emphasizes the importance of basing queries on solid grounds.