₹890.52 CR TAX + EQUAL PENALTY UNDER SECTION 74 CGST ACT ON TATA STEELS LTD WAS STRUCK DOWN BY SUPREME COURT

 ₹890.52 CR TAX + EQUAL PENALTY UNDER

 SECTION 74 CGST ACT ON TATA STEELS

 LTD WAS STRUCK DOWN BY SUPREME

 COURT

                TATA STEEL LTD. V. UNION OF INDIA

Tata Steel faced ₹890.52 Cr tax + equal penalty under Section 74 CGST Act.

The Supreme Court in Tata Steel Ltd. v. Union of India (2026) held that a Show Cause Notice (SCN) under Section 74 of the CGST Act cannot merely use labels like “fraud” or “suppression” without laying out the foundational facts.

The ₹890.52 crore tax demand plus equal penalty was struck down because the SCN was based only on audit objections, not on the independent satisfaction of the assessing officer.

The Supreme Court has made it clear—Section 74 is not a routine extension tool. Authorities must prove fraud or suppression with facts in the SCN itself. For corporates, this ruling is a strong defense against vague, audit-driven GST demands.

# Your Compliance expert R V SECKAR, FCS, LLB 79047 19295,