Wrongful Invocation of GST S. 130 Instead of S. 74: Allahabad HC Finds Prima Facie Case, Restrains Coercive Recovery

The Allahabad High Court found a "prima facie case" of "wrongful invocation of GST Section 73 instead of Section 74," restraining "coercive recovery." The court noted that the tax authority had initiated proceedings under Section 73 (cases not involving fraud or suppression) instead of the more stringent Section 74 (cases involving fraud, willful misstatement, or suppression) for a particular GST demand. Recognizing this procedural flaw, the court granted interim relief, preventing coercive recovery actions until the correct legal provision is invoked and due process followed.