The Supreme Court has rejected a curative petition of a petitioner to reconsider its earlier decision that dismissed their appeals regarding a tax penalty. This ruling upholds a previous decision made by the Andhra Pradesh High Court, which stated that imposing penalties under section 74 of the Central Goods and Services Tax (CGST) Act is appropriate in situations like not filing tax returns or failing to pay taxes.
The bench Chief Justice Surya Kant, Justice J.B. Pardiwala, Justice J.K. Maheshwari, Justice R. Mahadevan and Justice Vikram Nath, concluded that the petition did not fulfil the strict parameters needed for reconsideration of a final judgment. Thereafter, the curative petition was dismissed, and all pending interlocutory applications were also disposed of.
The curative petition originated from a challenge to a judgment made by the Andhra Pradesh High Court. The court ruled that failing to file required statutory returns, along with not paying taxes, constitutes the suppression of facts. This situation triggers penal provisions under section 74. The taxpayer had previously attempted to obtain relief at the SLP stage and later during review proceedings before the Supreme Court.
The Supreme Court stated that there was no basis for interference under the narrow scope of curative jurisdiction as defined in the case of Rupa Ashok Hurra v/s Ashok Hurra. The Court highlighted that curative petitions are permissible only in exceptional cases that involve gross miscarriages of justice, which were not illustrated in this instance.
With this dismissal, the legal position confirmed by the Andhra Pradesh High Court is reinforced: persistent non-compliance, especially the failure to submit returns and meet tax obligations, can rightfully be regarded as suppression of facts. This justifies extending the limitation period and imposing penalties u/s 74 of the CGST Act.
| Case Title | M/s Sriba Nirman Company V/S The Commissioner Guntur, Central Tax and Customs & Ors. |
| Case No.: | CURATIVE PET(C) No.129/2026 |
| Supreme Court | Read Order |
