Limitation Period Provided u/s 73 Would Be Separately Applicable for Every Assessment Year | HC

Case Details: Titan Company Ltd. v. Joint Commissioner of GST & Central Excise - [2024] 159 taxmann.com 162 (Madras)

Judiciary and Counsel Details

• • Krishnan Ramasamy, J.
  • N.L. Rajah & Natesan Murali for the Petitioner.
  • M. Santhanaraman for the Respondent.

Facts of the Case

The petitioner received bunching of Show Cause Notices (SCNs) for GST dues spanning five assessment years. It filed writ petition against the same contending that it violated Section 73 of CGST Act, 2017’s three-year limitation period for each year.

High Court Held

The Honorable High Court noted that Section 73(10) of the Act specifically provides a time limit of three years from the due date for furnishing of annual return for the financial year to which the tax due relates to. In the present case, notice was issued under section 73 of the Act for determination of the tax and therefore, the limitation period of three years as prescribed under section 73(10) would be applicable

Moreover, the time limit of three years would be separately applicable for every assessment year and it would vary from one assessment year to another. It is not that it would be carried over or that the limitation would be continuing in nature and the same can be clubbed. Therefore, the Court held that issuing bunching of show cause notices would be against the spirit of provisions of Section 73 of the Act and the same was liable to be quashed.