Section 74 of the CGST Act, 2017—Demand Order —-The petitioner challenged an order dated 03.03.2022, imposing liability of tax and 100% penalty in accordance with section 74(5), on the ground that no notice, as was mandatorily required by section 74 (1), has been served upon the petitioner. The respondent counsel submitted that a notice dated 29.12.2021 has been issued to the petitioner referable to rule 142 (1A) of the Rules. The Counsel for the petitioner submitted that the aforesaid notice does not sufficiently meet the statutory requirement inasmuch as the notice herein was required to have been issued under section 74 (1). The court observed that appropriate notice under Section 74(1) of the Act has not been served upon it.

Held that:- The Hon’ble High Court set aside the order and directed the authorities to issue a fresh notice under section 74 (1) and proceed further in the matter in accordance with the law.