PRAYAGRAJ, Sept. 18 -- Expressing concern over harassment of dealers under the garb of Section 74 of the GST Act, the Allahabad high court has observed that the GST regime was introduced by the central government to promote ease of doing business in the country, but revenue officers are acting contrary to its very theme and intent. "When it was noticed by the government that, under the garb of Section 74 of the Act, various dealers were being harassed, a circular dated December 13, 2023, was issued, wherein it was specifically stated that proceedings under Section 74 of the Act could be initiated only if there is fraud or willful misstatement or suppression of facts to evade payment of tax, and not otherwise." Allowing a writ tax petition filed by M/s Safecon Lifescience Private Limited, Justice Piyush Agrawal, in his judgment dated September 9, held that when the actual movement of goods has been proved by the assessee and the same remains unrebutted by the authority, proceedings under Section 74 of the Goods and Services Tax Act, 2017, are unjustified. Proceedings under Section 74 of the GST Act can be initiated if an assessee has not paid, or has short-paid, or has erroneously claimed a refund, or has wrongly availed or utilized input tax credit through fraud, willful misstatement, or suppression of facts. During the court proceedings, the petitioner submitted that certain transactions were carried out with M/s Unimax Pharma Chem, Purana Taluka Bhiwandi, Thane, for which invoices, e-way bills, and transport bilty were generated. It was submitted that all transactions were conducted through banking channels and that the other company had filed tax returns declaring the transactions. The petitioner was issued a notice under Section 74 of the GST Act for allegedly wrongfully availing ITC, on the grounds that the registration of the other firm had been cancelled....