2025 (4) TMI 1148 - HC - GST

Time limitation for filing SCN - whether the impugned SCN was issued beyond the permissible statutory limitation? - HELD THAT - There are substance in the argument of learned counsel for the petitioner that a combined reading of Section 73(2) and (10) of the Act permits the Department to issue show cause notice upto three months prior to the passing of the assessment order. The assessment order was passed on 28.02.2025 and therefore the show cause notice could have been issued upto 28.11.2024. Whereas in the instant case it was issued on 30.11.2024. Similar view was taken by the Andhra Pradesh High Court in M/s. The Cotton Corporation of India 2025 (2) TMI 362 - ANDHRA PRADESH HIGH COURT . In view of the statutory provisions and interpretation by the Andhra Pradesh High Court we find substantial force in the argument of learned counsel for the petitioner that the impugned assessment order cannot sustain judicial scrutiny. The impugned assessment order dated 28.02.2025 is set aside and the Writ Petition is allowed

Summary

The Telangana High Court, through Acting Chief Justice Sujoy Paul, held that the impugned show cause notice issued on 30.11.2024 was beyond the permissible statutory limitation under Section 73(2) and (10) of the Central Goods and Services Tax Act, 2017. The assessment order dated 28.02.2025 required the show cause notice to be issued no later than 28.11.2024, but issuance on 30.11.2024 exceeded this period. Reliance was placed on the Andhra Pradesh High Court's decision in M/s. The Cotton Corporation of India v. Assistant Commissioner (ST) (Audit), which supported this interpretation. The Court concluded that the assessment order could not "sustain judicial scrutiny" and accordingly set aside the order dated 28.02.2025, allowing the writ petition. No costs were imposed.