Section 74 of the CGST Act, 2017—Show Cause Notice —No condition of issuing SCN under Section 61 precedent to SCN under Section 74 -The petitioner submitted that the department apparently has not initiated any action referable to Section 61 of the Act and initiated proceedings under Section 74. The counsel for the petitioner submitted that since returns had been submitted by the petitioner, therefore, the appropriate course open for the department was to have pointed out deficiency in the returns submitted so as to give it an opportunity to rectify the return before proceeding under Section 74. The court observed that no discrepancy was noticed by the department in the returns of the petitioner nor any such deficiency was pointed out. Later on it was found that proper tax has not been deposited and consequently proceeding under Section 74 has been initiated. The scrutiny proceedings of return as well as proceeding under Section 74 are two separate and distinct exigencies and issuance of notice under Section 61(3), therefore, cannot be construed as a condition precedent for initiation of action under Section 74 of the Act. The petitioner has a remedy of preferring appeal which has not been availed.

Held that:- The Hon’ble High Court dismissed the petition and permitted the petitioner to prefer appeal within two weeks and in the event such an appeal is filed, the same shall be entertained without raising any objection with regard to limitation.