Section 74 of the CGST Act, 2017  — Show Cause Notice –-- The petitioner challenged the legality and validity of the Appeal order dated 30.03.2022, whereby the imposition of penalty, has been justified under Clause(a) of Sub-Section (1) of Section 129. The petitioner submitted that the adjudicating authority, imposed penalty under Section 74  which is contradictory and is a clear violation of principle of natural justice because before filing of annual return no assessment could be made under Sub-Section 10 of Section 74. The court observed a clear contradiction in between the two orders i.e. the order dated 06.01.2021 passed by the respondent no.3, the adjudicating authority and the order dated 30.03.2022, passed by the respondent no.2, the appellate authority. Therefore, Section 74 will not apply in this case since no case has been made out in the SCN as well as in the impugned orders.

Held that:- The Hon’ble High Court set aside the impugned order dated 06.01.2021, as well as the order dated 30.03.2022, and remanded the matter back to the respondents authority concerned to decide afresh in accordance with law.