Chhattisgarh HC says Section 74 Notice Must Show Foundational Facts of Suppression

The Department issued Section 74 notices alleging wrongful availment of ITC through fake invoices without actual supply of goods. The High Court found that the notices did not disclose sufficient foundational facts to support the allegations of fraud, wilful misrepresentation or suppression. Following the Supreme Court's ruling in Tata Steels, the notices were quashed, while liberty was granted to issue fresh notices in accordance with law.