Audit-based GST fraud demands require evidence of deliberate wrongdoing, with fresh determination and limitation affecting recovery across different years.
Case-Laws
GST
Section 74 GST demands require evidence that fraud, wilful misrepresentation or suppression caused short-payment, with the foundational facts disclosed in the show-cause notice. Audit discrepancies based on taxpayer-produced records and failure to pay before audit do not, without evidence of deliberate non-disclosure, establish wilful suppression. An uncontroverted turnover-based exemption explained the non-filing of GSTR-9C and accounts. Where the section 74 grounds fail, section 75(2) provides for fresh tax determination as if notice had been issued under section 73(1). Further recovery for 2017-18 was time-barred; fresh determination for 2018-19 and 2019-20 required notice and an adequate hearing.
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