Case Law Analysis
|Gauhati High Court
Section 74 NGST Act | Penal Demand Requires Allegation of Fraud or Suppression - Mere Non-Payment Insufficient: Gauhati HC
The Gauhati High Court has ruled that a show cause notice under Section 74 of the NGST Act cannot be issued solely for non-payment of tax; it must explicitly allege fraud or suppression of facts to trigger penal liability. This reinforces procedural fairness and prevents arbitrary tax enforcement, protecting businesses from punitive action without statutory grounds.