GSTAT says non payment Before Audit Does Not Establish Wilful Suppression Under Section 74

The GSTAT Kolkata Bench set aside proceedings under Section 74 where the alleged discrepancies were detected from the taxpayer's own records and the Department had not identified any incriminating material establishing wilful suppression. Relying on the Supreme Court's decision in Tata Steel Limited v. Union of India, the Tribunal reiterated that the ingredients of fraud, wilful misrepresentation or suppression must be supported by foundational facts and cannot be established through mechanical recital of statutory expressions. It further held that non-payment of tax before departmental audit does not necessarily amount to wilful suppression. The proceedings for FY 2018-19 and FY 2019-20 were remanded for fresh determination under Section 73, while the proceedings for FY 2017-18 were held time-barred.