Introduction

The petitioner, M/s Canon India Private Limited, challenged three Show Cause Notices (SCNs) dated 13.07.2024 issued under Section 74 of the CGST Act for the financial years 2017-18, 2018-19, and 2019-20. The notices were issued pursuant to an inspection conducted under Section 67, alleging suppression of facts leading to short payment of tax.

The petitioner contended that the Department had wrongly invoked Section 74, which permits extended limitation in cases involving fraud, wilful misstatement, or suppression of facts. According to the petitioner, the allegations, even if accepted, could at best attract proceedings under Section 73, and therefore the SCNs under Section 74 were illegal and time-barred. The petitioner also submitted that the pendency of these SCNs adversely affected its eligibility under the Authorised Economic Operator (AEO) programme of the Central Board of Indirect Taxes and Customs.