B.K. Steels v. Assistant Commissioner (State Tax)
In favour of the assessee; matter remanded
The ruling in brief
B.K. Steels (Telangana High Court, WP 17499 of 2026, 15 June 2026) returned after earlier writ remand directing adjudication on original show cause under Sections 74 and 75 following personal-hearing violation. Despite directions, Assessing Officer issued second show cause and fresh order for same year, effectively restarting proceedings. Court held second notice impermissible and beyond remand scope; authority must adjudicate first show cause only after granting compliant hearing and considering reply. Impugned order set aside with consequential directions preserving prior High Court mandate. Outcome: in favour of the assessee; matter remanded. Important for litigation strategy after partial writ wins—department must adhere strictly to remand terms. Not legal advice. This editorial note is for Chartered Universe professional research and is not legal advice.
For information only — not legal advice. Read the full judgment and applicable law before relying on this summary.
Provisions considered
- CGST S.74 — Determination of tax not paid or short paid involving fraud or suppression.
- CGST S.75 — General provisions relating to determination of tax.
Source documents
Similar rulings
In favour of the revenue
Supra Enterprises v. Assistant Commissioner
Supra Enterprises, a GST-registered partnership, filed W.P.(C) No. 11352 of 2024 before the Delhi High Court; the matter was decided on 31 August 2026 against a demand following a show cause notice alleging suppression and wrongful availment of input tax credit. The department contended that full opportunity to reply and be heard was provided, and that remaining disputes concerned appraisal of records and merits under sections 73, 74, 65, and 75 of the CGST Act. The Court agreed that where replies were on record and issues are essentially factual or evidentiary, Article 226 is not a substitute for appellate scrutiny under the GST statute. The writ petition was held not maintainable and the assessee was relegated to the statutory appeal forum. The decision favoured the revenue on jurisdiction. This editorial note is not legal advice.
In favour of the assessee; matter remanded
Sanat Kumar Hazra v. Assistant Commissioner, State Tax, Howrah and Kadamtala Charge
Sanat Kumar Hazra (WPA No. 27554 of 2025) challenged an ex parte Section 74 order uploaded on the wrong GST portal tab, escaping notice. The High Court of Calcutta on 8 July 2026 set aside the order and granted opportunity to contest the show cause notice subject to deposit of Rs. 1 lakh towards disputed tax under Sections 74 and 75. Outcome: assessee favoured with conditional remand. Portal hygiene and assessee vigilance on all tabs matter for timely challenge. Deposit conditions balance revenue protection with restored hearing rights. CAs should monitor DRC-07 publications across portal sections. Not legal advice. Disposed on 2026-07-08, High Court of Calcutta recorded in favour of the assessee; matter remanded in WPA NO. 27554 OF 2025. Central provisions engaged included CGST S.74, CGST S.75. Chartered accountants should map period-wise limitation, personal hearing, and appeal under Section 107 when advising on replies, deposits, or writ versus appeal strategy. This editorial summary is for professional research and is not legal advice.
In favour of the assessee
Phoenix Medical Syatems (P.) Ltd. v. State of Andhra Pradesh
Phoenix Medical Systems (P.) Ltd. (Writ Petition No. 22371 of 2024) challenged a Section 74 assessment before the High Court of Andhra Pradesh on 8 July 2026. The adjudicating authority did not consider the assessee’s reply and failed to grant mandatory personal hearing under Section 75(4) where an adverse DRC-07 was contemplated. The vitiated order and consequential proceedings were quashed. Outcome favoured the assessee. Sections 74 and 107 frame appeal rights after valid adjudication; defective hearing renders the order a nullity at writ stage. Medical device and pharma distributors facing fraud notices should document hearing requests and replies. Informational; not legal advice. Disposed on 2026-07-08, High Court of Andhra Pradesh recorded in favour of the assessee in WRIT PETITION NO. 22371 OF 2024. Central provisions engaged included CGST S.74, CGST S.75, CGST S.107. Chartered accountants should map period-wise limitation, personal hearing, and appeal under Section 107 when advising on replies, deposits, or writ versus appeal strategy. This editorial summary is for professional research and is not legal advice.
In favour of the assessee; matter remanded
WFB Baird and Company India (P.) Ltd. v. State Tax Officer I
WFB Baird and Company India (P.) Ltd. approached the Madras High Court in WP Nos. 24237 and 24239 of 2026, decided 7 July 2026, against a demand raised under section 74 of the CGST Act for alleged excess input tax credit from return mismatches. The show cause notice did not allege fraud, wilful misstatement, or suppression of facts. Justice Senthilkumar Ramamoorthy held that without ingredients required for section 74, proceedings must run under section 73, rendering the assessment order unsustainable. The matter was remanded for a fresh decision under the correct section, with liberty to claim applicable statutory reliefs including those under section 128A where relevant. The outcome favoured the assessee with remand. Useful for distinguishing section 73 versus 74 in ITC mismatch cases. Not legal advice.
In favour of the assessee; matter remanded
Clear Secured Service (P.) Ltd. v. Assistant Commissioner (ST)
Clear Secured Service (P.) Ltd. (Madras High Court, WP 23402 of 2026, 1 July 2026, Senthilkumar Ramamoorthy, J.) had input tax credit reversed following Section 73 show cause tied to supplier whose registration was later cancelled. Assessee produced bank statements, tax invoices, e-way bills, ledgers and GSTR-2A/2B reconciliations under Section 16 eligibility principles. Adjudicating authority reversed ITC solely due to supplier cancellation without evaluating documentary proof or granting opportunity to adduce further evidence (Sections 74 and 75 procedural fairness). Order unsustainable; set aside with direction for fresh adjudication considering entire record. Outcome: in favour of the assessee; matter remanded. Recipient ITC defences require merit review beyond supplier status changes. Not legal advice. This editorial note is for Chartered Universe professional research and is not legal advice.