Allahabad HC says GST SCN Cannot Be Quashed Merely on ITC Dispute

The Court held that Section 61 scrutiny is not a mandatory pre-condition for issuing a Section 74A SCN where the Department has independently gathered material suggesting that the underlying supplies are non-genuine. At the same time, the Court left the taxpayer free to establish the genuineness of the transactions through work orders, measurement records, bank payments, GSTR-2A/2B and other evidence before the adjudicating authority.