No Limitation on Powers U/S 74(1)-The petitioner challenged the Show Cause Notice issued under Section 74.

The petitioner contended that an order of erroneous refund it was open to the department to have filed an appeal under Section 107(1).

But having missed the time limit for doing so, the Department cannot reopen the refund already granted pursuant to an adjudication on the refund application by resorting to Section 74.

Section 74(1):

“74. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts.-

(1) Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilized by reason of fraud, or any willful misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilized input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under Section 50 and penalty equivalent to the tax specified in the notice.”