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Paying interest and penalty while availing the option of payment of tax u/s 74(1) for the purposes of avoiding the show cause notice cannot be denied

Section 74 of the CGST Act — Show Cause Notice – The petitioner challenged the intimation that was issued to her under Section 74(5) read with Rule 142(1A), whereby she was intimated of the tax, penalty and interest payment that she was required to make in the event of her opting to make such payment to avoid a show cause notice under Section 74(1) of the Act. The petitioner submitted that she must be permitted to avail the option envisaged under Section 74 without paying the interest and penalty amounts that are stipulated as conditional payments for avoiding the show cause notice envisaged under the said provision. The court observed that the petitioner wants to obtain an exemption from the requirement of payment of interest and penalty amounts. But such an exercise is not permissible in terms of the Statute. If she opts for the scheme, she has to comply with the terms under which the option is made available under the statute. She cannot seek a variation of the said scheme. Held that:- The Hon’ble High Court dismissed the writ petition.
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