Issuance and Dropping of Notice Under Section 73 Does Not Prevent Authorities from Initiating Proceedings u/s 74 | HC
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- Last Updated on 16 December, 2024
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Case Details: Group M Media India (P.) Ltd. v. Union of India - [2024] 169 taxmann.com 146 (Punjab & Haryana)
Judiciary and Counsel Details
- Sanjeev Prakash Sharma & Sanjay Vashisth, JJ.
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Tarun Gulati, Sr. Adv., Nikhil Goyal & Ms Anishka Gupta, Advs. for the Petitioner.
Facts of the Case
The petitioner was issued a notice under section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act) and after the reply was filed, the proceedings were dropped. However, later, another notice under Section 74 was issued by the State Tax Officer. Aggrieved by the order, the petitioner filed a writ petition before the Punjab and Haryana High Court.
High Court Held
The High Court held that the issuance of notice under section 73 and dropping the same would not prevent the authorities from independently initiating proceedings under section 74. The said proposition has also been accepted by the Allahabad High Court in the case of HCL Infotech Ltd.
Further, the notice under section 74 was issued to the petitioner based on the fact that the petitioner had not deposited the tax liability in the Government treasury. The proceedings under section 74 of the Act are comprehensively and completely laid down under the provisions of the Act. Thus, there would be no hindrance of any manner in the disposal of the proceedings.
List of Cases Reviewed
- HCL Infotech Ltd. v. Commissioner Tax and another [2024 (9) TMI 1644] [Para 10] distinguished.
List of Cases Referred to
- Raj Bahadur Narain Singh Sugar Mills Ltd. v. Union of India and others (1997) 6 SCC 81 (para 4)
- HCL Infotech Ltd. v. Commissioner, Commercial Tax and another 2024 (9) TMI 1644 (para 4).
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