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Supreme Court clarifies that invocation of extended limitation under Section 74 of the CGST Act must be supported by specific allegations in the SCN September 1, 2026
Published in: Alerts
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The Supreme Court, in G.R. Infra Projects Limited v. State of Madhya Pradesh & Ors., held that a mere reference to “fraud”, “wilful misstatement” or “suppression of facts” is insufficient to invoke the extended limitation under Section 74 of the CGST Act.
The Court emphasised that the SCN itself must set out the facts and circumstances forming the basis for such allegations. Deficiencies in the SCN cannot subsequently be cured through a counter-affidavit or pleadings before the Court.
The judgment provides important guidance for taxpayers challenging proceedings under Section 74, particularly where the SCN is issued beyond the limitation period applicable under Section 73.
For any clarification, please write to:
Mr. Shammi Kapoor
Senior Partner
[email protected]
Mr. Vishal Kumar
Partner
[email protected]
Mr. Arnab Roy
Partner
[email protected]