Show Cause, Don't Pre-Determine: Judicial Scrutiny of Section 74 Notices under the TNGST Act / CGST Act

GST extended-period proceedings require show cause notices to allege and disclose fraud or wilful misstatement.

Extended limitation under GST is available only where the tax shortfall is 'by reason of' fraud, wilful misstatement or suppression to evade tax; these are jurisdictional facts. Show cause notices must allege such conduct and disclose the material basis for that inference, and must specify proposed amounts without language of final determination. Invocation of extended limitation without these ingredients vitiates proceedings and precludes remand; authorities may pursue recovery under the normal limitation where applicable.