The Court noted that if delays were condoned, it could undermine taxpayer protections outlined in Sections 73(10) and 75(2) of the GST Act.
The Andhra Pradesh High Court has ruled that a delay of two days in issuing a Goods and Services Tax (GST) notice cannot be excused, emphasizing the mandatory nature of the time limits prescribed under the GST Act.
Court’s Ruling on GST Notice Delay
A Division Bench comprising Justices R. Raghunandan Rao and Harinath N. clarified that the time limit outlined in Section 73(2) of the GST Act is mandatory. Any deviation from this timeframe renders the show cause notice invalid.
Case Background
The case involved M/s The Cotton Corporation of India, which received a show cause notice dated November 30, 2024, pertaining to the assessment year 2020-2021. However, the stipulated cutoff date for issuing the order was February 28, 2025, meaning the notice should have been issued within three months, i.e., by November 28, 2024. Since the notice was issued on November 30, 2024, it exceeded the permissible time frame under Section 73(2).
Court’s Observations
The Bench highlighted that the limitation periods under the GST Act are strictly mandatory, and authorities cannot issue notices beyond the prescribed timeframe. The Court further noted that if delays were condoned, it could undermine taxpayer protections outlined in Sections 73(10) and 75(2) of the GST Act. These provisions ensure that taxpayers receive adequate time for response, including at least three adjournments for personal hearings.
The Court warned that if authorities were allowed to issue notices at their discretion—such as giving taxpayers only a week or ten days to respond—it would defeat the intent of the law. The judgment reinforces the principle that procedural compliance is crucial in tax administration.
Also Read: Timely Notice In GST Evasion Cases: Section 73(2) & Its Implications
Verdict and Conclusion
In light of these findings, the Andhra Pradesh High Court ruled in favor of the petitioner, M/s The Cotton Corporation of India, and set aside the delayed GST show cause notice.
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: Karthik Ramana Puttamreddy
This ruling sets a precedent that tax authorities must adhere to statutory deadlines to uphold taxpayer rights and ensure procedural fairness.
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