Jurisdictional overreach when Suspicion takes over Statute

Todays position on J the appl The ruling in Raghuvansh Agro Farms Ltd. operates as a clear judicial corrective to the routine and overextended invocation of Section 74 under the GST regime. The Court firmly held that allegations of circular trading cannot be sustained on mere suspicion or post-facto assumptions, especially where statutory returns, records, and banking trails consistently evidence genuine transactions. At the same time, the judgment draws a sharp line on jurisdiction, emphasizing that cross-empowerment between Central and State tax authorities is a matter of statutory mandate and GST Council authorization, not administrative convenience. In reinforcing these limits, the decision significantly strengthens taxpayer safeguards and reasserts that GST enforcement must remain confined to clearly demarcated constitutional and statutory boundaries.