The Court held that the fresh SCN for a different assessment year suffered from the same infirmity as the one quashed by the Supreme Court — no foundational facts of fraud or suppression disclosed.
The Madhya Pradesh High Court has quashed a show-cause notice dated 25.08.2026 issued under Section 74 of the CGST Act to M/s GR Infra Projects Limited for a subsequent assessment year, holding that it was identical in its deficiency to the earlier notice for assessment year 2018-19 that had been set aside by the Supreme Court in the same assessee’s case [GR Infra Projects Ltd. v. State of Madhya Pradesh & Ors.].
The bench of Chief Justice Alpesh Y. Kogje and Justice Vinay Saraf noted that the Supreme Court, in Civil Appeal No. 11277/2026 arising from the same assessee’s challenge to an earlier SCN, had held that a bare statement of “fraud or concealment of facts” is insufficient for Section 74 — the foundational facts leading to the inference of fraud or suppression must emanate from the notice itself, and the words cannot be mechanically recited to enable recovery outside normal limitation.
The Court found that the fresh SCN, though issued for a different period, suffered from the same non-disclosure of ingredients required under Section 74. It observed that Section 73 prescribes a limitation of three years while Section 74 allows five years, and a notice cannot be issued under Section 74 merely to bring a case within the extended limitation if no grounds of fraud, willful misstatement, or suppression are disclosed.
While quashing the SCN and all consequential proceedings, the Court kept liberty open for the department to issue a fresh show-cause notice in accordance with law, particularly meeting the requirements of Section 74.
2026-juristway.com-3093-HC(Madhya Pradesh)-GST
