Two basic requirements on issuance of show cause notice and adjudication.

When this article is published, we have around 20 days for timely filing of the GSTAT Appeals. While many taxpayers as well as tax professionals are busy on filing the second appeal in time, I thought the following two key aspects, in case the same are applicable in their case may give some value addition. These are all very recent developments arising from High Court decisions which are most important for the taxpayers as well as tax professionals, as tax officials may not listen to these genuine arguments until GSTAT endorses the views strongly.

The first issue is on issuance of show cause notices within the stipulated time limit which are mandatory in nature. The SCN has to be issued within 33 months from the due date for filing the annual return if issued under section 73 and 54 months from the due date for filing the respective annual return if issued under section 74. So far so good. Many were of the opinion (till 30/06/2026, including me) that as and when the due date for filing the annual return is extended, the same is extended for filing the SCN as well. However, the Tripura High Court on 30/06/2026 [Sri Shekhar Chandra Podder, Prop. of M/s. Shekhar Chandra Podder Versus The Union of India, The Director, Government of India, Ministry of Finance (Department of Revenue), Central Board of Indirect Taxes and Customs, The Chief Commissioner of State Tax, Government of Tripura, The Joint Commissioner of State Tax, Government of Tripura, The Joint Commissioner, Ministry of Finance, Revenue Department, Government of India, Central Goods and Services Tax, Tripura, The Assistant Commissioner (Anti-Evasion), Tripura, The Superintendent of State Tax, Government of Tripura, The Superintendent (Enforcement), Central Goods and Services Tax, Tripura, The Superintendent (Anti-Evasion), Tripura. - 2026 (7) TMI 223 - TRIPURA HIGH COURT] has categorically held that any extension in due date for filing the annual GST return is only for facilitating the taxpayer to file the GST return within such extended time in cases where the same was not filed in time. This has nothing to do with the final date for issuance of SCN which still stands as 30/09/2021 under 73 and 30/06/2023 under 74 for the year ended 31/03/2018 and so on and so forth.

This is highly a tricky issue as even several high courts have taken decisions already applying the due dates as per Table I below. Hence, wherever the orders have already attained finality, leave this as it is. There are several cases wherein issues pertaining to even the very first year 2017-18 has not attained finality as on date. This article is for those cases as they may take advantage of this view now in the GSTAT.

Table I. The due dates under 73 and 74 for SCN and OIO as believed to be correct.

There is no change in Table I and Table II furnished below for the years beyond 2020-21.

As the gap in respective cells in table I as against table II is huge and even one day make the difference in making the SCN or OIO impermissible, readers are requested to compare these dates once again in respect of all cases where litigation is still live and not attained the finality.

Table II. The due dates under 73 and 74 for issuing SCN and passing OIO- CORRECTED

It may be observed that the differences in the respective cells are high during initial years and accordingly huge number of orders are likely to have crossed the first appeal. If that is the case, those who had an initial opinion of accepting the order of the first appellate authority as it is, but still aggrieved as entire relief has not been granted in first appeal must revisit the dates of SCN as well as OIO for the first fewa years up to 31/03/2021 and go for second appeal, even the order or SCN is delayed even by one day beyond the dates mentioned in table II above to get desired relief now.

The second issue is the time gap between SCN and OIO dates. The OIO is required to be passed only after a gap of a minimum period of three months as provided in section 73. This is highly important to allow the taxpayer a period of 30 days for replying the SCN, 30 days for appearing in person and next 30 days are for the tax officer to consider the replies more appropriately. Several high courts have already held that orders passed in a hurried manner within two months as well as orders passed without the opportunity of personal hearing are all against the principles of natural justice.

Hence, it is the final call for all taxpayers whose cases are live as on date to look in to the above aspects and those who decided that table I was correct, but their case pertain to a day beyond the dates mentioned in the respective cells of Table II have a very good case for further representation. It is concluded by stating that there are each and every possibility that this decision of the division bench of the Tripura High Court dated 30/06/2026 may be intervened by Supreme Court or the Government may go for even retrospective amendment, but till such time, Table II is correct.