GSTAT says Vague SCN Cannot Sustain Section 74 Penalty

The Tribunal held that a Section 74 penalty cannot rest on vague allegations, an unsupported inference of wilful suppression or arguments introduced by Revenue at the appellate stage. The SCN must identify the alleged suppression and its statutory basis. Applying Supreme Court principles on the need for a self-sufficient notice, GSTAT set aside the penalty while retaining the taxpayer's liability to pay the balance interest.