Delay Of Two Days In Issuing GST Notice Can't Be Condoned: Andhra Pradesh High Court
Mehak Dhiman
18 Feb 2025 1:30 PM
The Andhra Pradesh High Court stated that delay of two days in issuing the GST notice cannot be condoned. The Division Bench of Justices R. Raghunandan Rao and Harinath N. observed that “the time permit set out under 73(2) of the Act is mandatory and any violation of that time period cannot be condoned, and would render the show cause notice otiose.” In this case,...
The Andhra Pradesh High Court stated that delay of two days in issuing the GST notice cannot be condoned.
The Division Bench of Justices R. Raghunandan Rao and Harinath N. observed that “the time permit set out under 73(2) of the Act is mandatory and any violation of that time period cannot be condoned, and would render the show cause notice otiose.”
In this case, the assessee/petitioner received a show cause notice, dated 30.11.2024, in relation to the assessment year 2020-2021 which was delayed by two days. The cutoff date for issuing an order was 28.02.2025. The three months period which would elapse from this date would be 28.11.2024.
The assessee has challenged the show cause notice dated 30.11.2024 before the Andhra Pradesh High Court.
The bench noted that the cutoff date for issuing an order is 28.02.2025. The three months period which would elapse from this date would be 28.11.2024. Since the notice was issued on 30.11.2024, it would be beyond the time stipulated under Section 73(2) of the GST Act.
The bench observed that these periods of limitation are mandatory and not orders can be passed beyond the periods set out in the Act. In such a situation, it would be difficult to hold that the stipulation as to the period of initiation, of such proceedings, by issuance of a show cause notice, would only be directory and not mandatory.
The bench stated that when there is a possibility of an adverse order being passed against tax payer, the facility of obtaining at least three adjournments for personal hearing etc. The said provisions, protecting the interest of the tax payer, would be rendered otiose if notice should permitted to be sent without a minimum waiting period.
“The said protections can then be bypassed by the authorities issuing show cause notice with a week's time or 10 days and calling upon tax payer to put forth his objections in that shortened time. That does not appear to be intent of the provisions of Section 75(2) or Section 73 (10) of the GST Act,” added the bench.
In view of the above, the bench allowed the petition.
Case Title: M/s The Cotton Corporation of India v. Assistant Commissioner (ST) (Audit) (FAC)
Case Number: W.P.No.1463 of 2025
Counsel for Petitioner/ Assessee: Karthik Ramana Puttamreddy