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TMI Blog2025 (2) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... tment are the appellants herein aggrieved by the judgment dated 28.01.2025 of the learned Single Judge in W.P.(C). No. 2911 of 2025. 2. The brief facts necessary for disposal of this writ appeal are as follows: The respondent herein had challenged Ext.P1 show cause notice that sought to invoke Section 74 of the Central Goods and Services Tax Act [hereinafter referred to as the "CGST Act"] to demand differential tax, interest and penalty from it on an allegation of suppression of turnover during the financial years 2017-18 to 2023-24. The main ground of challenge against Ext.P1 show cause notice in the writ petition was that inasmuch as the appellants herein had issued a single consolidated notice for six different financial years, the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejudice the respondent/assessee in relation to its contentions for those assessment yeas where the time limit prescribed under Section 74 (10) of the CGST Act would not expire by 07.02.2025, which was the last date for passing orders in respect of assessment year 2017-18. The learned Judge therefore granted liberty to the appellants herein to pass appropriate orders for 2017-18 pursuant to Ext.P1 show cause notice within the period of limitation prescribed under Section 74 (10) of the CGST Act, reserving the right to the authority to pass separate orders of determination for each of the other assessment years mentioned in the show cause notice after granting reasonable opportunity of hearing to the respondent/assessee in accordance with la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful 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 utilised by reason of fraud, or any wilful-mis statement 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 utilised 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 sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 74 imposes a limit on the power of the proper officer with regard to the time within which he should issue the show cause notice under sub-section (1) of Section 74. That time limit is at least six months prior to the time specified in sub-section (10) for the issuance of an order of adjudication. Sub-section (9) of Section 74 speaks about the determination of the amount of tax, interest and penalty by the proper officer and the issuance of an order quantifying such amounts. Sub-section (10) specifies the period within which the order under sub-section (9) should be passed as five years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssuance of the show cause notice. Similar was the provision under Section 11A of the erstwhile Central Excise Act. Under both of the above provisions, the show cause notices issued, irrespective of whether it covered a single financial/assessment year or multiple years, had to be adjudicated within a fixed period of one year from the date of the show cause notice. The scheme of adjudication is different under the CGST Act. Under Section 74 of the CGST Act, the end termini for adjudication varies for each financial/assessment year, since it is not pegged to the date of the show cause notice but to a period of five years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pending upon the number of financial/assessment years included in the consolidated notice. The determination of tax, penalty etc. would be in respect of all the financial/assessment years put together. That would go against the provisions of sub-sections (9) and (10) of Section 74 which specifically refer to the "financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates" while stipulating the last date for passing the adjudication order. A consolidated notice would also result in a consolidated adjudication order covering several financial/assessment years and in the event of it being adverse to the assessee, the fee/pre-deposit required to be paid by an assessee for preferring a statutor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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