Reversal of input tax credit in proportion to exempt supply: specificity of show-cause notice required; order set aside, fresh proceedings allowed wit...
Benami transaction and beneficial ownership: documentary and circumstantial evidence show payors were true beneficiaries, resulting in PBPTA consequen...
HC held that show cause notices issued under Section 74 were invalid because they did not disclose the jurisdictional facts required to invoke fraud, wilful misstatement, suppression of facts, or the basis for alleging tax evasion. The notices were therefore quashed, with liberty to issue fresh proceedings if legally permissible. The Court also found that the adjudication orders were passed without granting a hearing and without recording the relevant facts or reasons, contrary to Section 75. Those orders and the consequential DRC-07 summaries were set aside, and the writ petitions were allowed.
HC held that show cause notices issued under Section 74 were invalid because they did not disclose the jurisdictional facts required to invoke fraud, wilful misstatement, suppression of facts, or the basis for alleging tax evasion. The notices were therefore quashed, with liberty to issue fresh proceedings if legally permissible. The Court also found that the adjudication orders were passed without granting a hearing and without recording the relevant facts or reasons, contrary to Section 75. Those orders and the consequential DRC-07 summaries were set aside, and the writ petitions were allowed.
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