2025 (9) TMI 1057

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....disposed of. W.P.(C) 14127/2025, CM APPL. 57995/2025 3. The present petition has been filed by the Petitioner under Article 226 of the Constitution of India, inter alia, challenging the Show Cause Notice (hereinafter, 'SCN') dated 24th June, 2025 under Section 74 of the Central Goods and Service Tax Act, 2017 (hereinafter, 'CGST Act'). 4. The stand of the Petitioner as per the submissions made by Mr. Yogendra Aldak, ld. Counsel for the Petitioner, is that Section 74 of the CGST Act cannot be invoked in this case as there is no fraud or wilful misstatement or suppression of facts. Secondly, the authorities are proceeding on a pre-conceived notion and thirdly, that the Relied Upon Documents (hereinafter, 'RUDs') which are relied upon....

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....n their GSTR-3B and did not reverse the same as explained in the foregoing paras. The non-reversal of ineligible ITC availed in the aforesaid manner was never voluntarily divulged by the noticee in their GSTR-3B as mandated under Rule 42 & 43 of the CGST Act, 2017, but the same were detected/ unearthed by the Anti-Evasion Branch, CGST Delhi South during investigation at the time of the inspection proceedings and by investigation of their records/documents etc which otherwise, would not have come to the notice of the department. iii. Whereas, the facts unearthed during the investigation were not ascertainable from their GST returns, as had the department not initiated instant investigation the same would not have come to the notice ....

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.... the said provision on their part, the noticee has not reversed the ITC and trying to litigate the matter without divulging their contention/reservation/view on the matter. Therefore, it appears the noticee may place fictitious records/ incorrect explanation at the time of adjudication, where there is little scope of verification of concocted/ false information/ explanations submitted by the noticee. Thus, it appears that the noticee have acted upon a meticulously designed but nefarious plan and thereby indulged himself with mensrea, in the evasion of GST liabilities in the aforesaid manner. Therefore, provisions of Section 74 of the CGST Act, 2017 appears to be invokable in the instant matter. Further, due to aforesaid wilful omission and ....