Judicial Corner : SCN under sec. 74 UPGST Act quashed as it lacked allegations of fraud or intent to evade tax {[2025] 180 taxmann.com 796 (Allahabad)} (29.11.2025)

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SCN under sec. 74 UPGST Act quashed as it lacked allegations of fraud or intent to evade tax {[2025] 180 taxmann.com 796 (Allahabad)}

Facts

  • The department first issued an SCN under Section 73 for certain issues.
  • The assessee submitted a detailed reply.
  • Later, the same officer issued a fresh SCN under Section 74 for the same matters.
  • The new SCN did not contain any allegation of fraud, wilful misstatement, or suppression of facts.

 

Issue

Whether a fresh SCN under Section 74 can be issued when the earlier SCN under Section 73 had already been issued for the same issues and when the new SCN does not allege fraud or intent to evade tax.

 

Held

  • The High Court held that the SCN issued under Section 74 was invalid because it lacked the essential ingredients of Section 74  there were no allegations of fraud, misstatement, or suppression.
  • Section 74 cannot be invoked merely because the officer wants to issue another SCN.
  • The Court quashed the SCN but allowed the department to issue a fresh notice only if proper grounds exist under the law.