2026 (6) TMI 1462

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ngs under Section 74 of the respective GST Enactments. 2. By a Common Order today in W.P.No.2142 of 2026 [Turbo Energy Private Limited], W.P.Nos.35967, 35970, 35974 and 35976 of 2024 [Fastenex Private Limited] and W.P.Nos.14487, 14492 and 14500 of 2025 [Ispahani Estates Private Limited], a detailed order has been passed insofar as the invocation of extended period of limitation under Section 74 of the respective GST Enactments. 3. In these Writ Petitions, the Petitioner has challenged the respective Impugned Orders both dated 20.06.2024 passed for the Tax Periods 2020-2021 and 2021-2022. The respective Impugned Orders were preceded by a Show Cause Notice in Form GST DRC-01 both dated 07.05.2024 for the respective period to which the P....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....onfirmed. 6. Apart from the above, penalty and interest have been imposed on the Petitioner in the respective Impugned Orders. 7. The learned counsel for the Petitioner submitted that the "reasons to believe" the existence of Fraud or Wilful-misstatement or Suppression of Facts is a must before invoking the machinery under Section 74 of the respective GST Enactments. 8. The learned counsel for the Petitioner drew attention to the parallel provisions under Section 27 of the Tamil Nadu Value Added Tax Act, 2006 and Section 147 of the Income Tax Act, 1961. 9. The learned counsel for the Petitioner also drew attention to the decision of the Hon'ble Supreme Court in GKN Driveshafts (India) Limited Vs. Income Tax Officer and others, (....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....edings were initiated under Section 74 of the respective GST Enactments. 14. The learned Government Advocate for the Respondents further submitted that the Petitioner had not earlier explained how the difference in exempted supply arose, and therefore, these Writ Petitions are liable to be dismissed. 15. I have considered the arguments advanced by the learned counsel for the Petitioner and the learned Government Advocate for the Respondents. 16. A reading of the records reveal that the impugned proceedings are pursuant to an inspection held on 18.07.2023. During the course of an inspection, the records revealed that the Petitioner has not paid tax fully. Thus, invocation of machinery under Section 74 of the respective GST Enactment....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... statement for this difference and relevant tax paid is enclosed vide Annexure I. Defect No.3 In GSTR 9 Serial No.D alone available to submit the others as EXEMPTED As per GSTR9 total turnover is Rs.38992484 and your notice mentioned that 25439123 Not yet paid and the same paid in subsequent years. I therefore humbly request to drop this notice and there is no suppression and omission. 20. Since the records before the Respondents revealed short-payments of tax as compared to the amount mentioned in Form 26AS and in GSTR-7, the Respondents are entitled to invoke the machinery under Section 74 of the respective GST Enactments as the expression used therein is "where it appears" as held in W.P.Nos.35967, 35970, 35974 and 35976 o....