Can GST officers issue a fraud notice without proof? Madras HC explains

Madras High Court ruled that GST officers need not conclusively establish fraud before issuing a notice under Section 74 of the CGST Act.

The court held that a proper officer can issue a notice if material available on record is sufficient to form a prima facie opinion of fraud, wilful misstatement, or suppression of facts.

The judgment distinguishes Section 74 (fraud cases) from Section 73 (non-fraud cases), which have different limitation periods and penalties.

The court rejected arguments that notices based solely on audit reports or inspection findings are invalid.