[S.74 GST Act] Adjudicating Authority Must Record Prima Facie Satisfaction Regarding Assessee Wrongfully Obtaining Input Tax Credit: Allahabad HC

The Allahabad High Court ruled that prima facie satisfaction must be recorded in a show cause notice (SCN) under Section 74 of the GST Act for wrongful availment of Input Tax Credit (ITC) by fraud, willful misstatement, or suppression of facts. The court emphasized that the SCN must clearly state the grounds for such allegations to ensure fairness and transparency in tax proceedings. This decision underscores the importance of detailed and justified SCNs in tax disputes to uphold the principles of natural justice.