GST Payer Alleges S. 74 Order issued to Circumvent Limitation prescribed u/s 73: Madras HC allows to Contest on 25% Pre-deposit

A Madras High Court ruling allowed a GST payer to contest an order under Section 74 of the CGST Act, alleging it was issued to circumvent the limitation period prescribed under Section 73. The court permitted the challenge on the condition of a 25% pre-deposit of the disputed tax amount. This decision highlights the court's vigilance against potential procedural circumventions by tax authorities to overcome statutory time limits for issuing show-cause notices and orders. It ensures that taxpayers have an avenue to challenge orders where they believe the department has acted beyond its legal authority or manipulated provisions to bypass limitations, upholding principles of fairness.