TaxTMI 
TaxTMI 
11 Aug 2026 
Any inordinate delay is not acceptable from both the ends, be it the taxpayer or the tax-officer. Though the rules can not define exact time lines between any two activities, it has to be a reasonable period. The division bench of the High Court of Gujarat on 28/07/2026 had an occasion to handle one case where the department act very fast without giving even breathing time or act after all deadlines are already over. This story is analyzed in this article which was reported in Shahedabegum Irshadahmed Chaudhary, Lh of Deceased Irshadahmed Chaudhary Versus State Of Gujarat & Anr. - 2026 (8) TMI 403 - GUJARAT HIGH COURT.
One gentleman was carrying on a trading business in a rented premises and his wife was not involved in the business activities. GST registration was taken and the taxpayer was filing the GST returns promptly. Due to prolonged illness, he died on 29/07/2020. No business activities took place thereafter and as the taxpayer was handling the GST matters himself, his wife was not aware of any legal requirement of filing the GST returns. The department on 03/03/2021 cancelled the registration quoting that no GST returns were filed for a consecutive period of six months but raised nil demand. However, perhaps there were some issues during the financial year 2018-19 and the department suddenly woke up from the sleep on 24/06/2025. The interesting part of the story is that as registration got already cancelled on 03/03/2021 itself, in case there were any discrepancies, they had time till 30/09/2022 to invoke Section 73. Two High Courts have already held that the extension in time lines for filing GST Annual returns has nothing to do with time line for issuance of show cause notice and accordingly, SCN could have easily been issued latest by 30/09/2022 under section 73. As the bus was already missed, even without any evidence on suppression or misstatement of intention to evade tax, as GST returns were not filed during August 2020 till February 2021, authorities invoked section 74 in a convenient manner. Be that as it may, the deadline for issuing the SCN even under section 74 for the year 2018-19 stood as 30/06/2024 which the GST officials wrongly presumed to be as 30/06/2025.
As they decided only on 24/06/2025 to take action against the taxpayer, pre show cause notice in DRC 01A was issued on 24/06/2025 in the GST portal. As the deadline as per the stand of the GST official was 30/06/2025 for SCN, they issued SCN in DRC 01 in a hurried manner on 26/06/2025 itself. Again, this was only uploaded in portal which the legal heir is unaware as well as several High Courts have already questioned that how a taxpayer can view the GST portal when the registration stands cancelled. The GST officer should have sent a mail or speed post on the SCN to the taxpayer to facilitate him for a prompt reply.
Though the last date for passing the OIO legally stood as 31/12/2024, as the officer wrongly believed it to be 31/12/2025, the OIO got issued on 04/12/2025 again in the GST portal confirming entire demand of GST of Rs.21,49,414 along with interest as well as equal penalty under section 74. After the entire series as above is over, when the GST officer made an attempt to recover the tax, he made a phone call to the registered mobile number which was available with the department only during May 2026, despite the fact that the number was available even before cancellation of the registration. Be that as it may, as the legal heir of the deceased taxpayer received the phone call in May 2026 demanding huge amount as payable to department by her husband who died on 29/07/2020 itself, the writ was preferred in the High Court.
When this issue came up before the Gujarat High Court on 28/07/2026, the High Court ruled that "7. We have noted that the petitioner herein is a housewife, and not connected with her husband's business. The GSTIN number was also cancelled by the authorities by order dated 03.03.2021 wherein assessing nil demands on failure to file GST returns for a continuous period of six months, the respondent authority issued the impugned notice dated 26.06.2025 and the impugned order dated 04.12.2025 to a dead person since they were unaware about the death of the tax payer, i.e., Shri Irshadahmed Chaudhary (husband of the petitioner).
8. For the reasons as referred to herein-above, the impugned notice 26.06.2025 and the impugned order dated 04.12.2025 are hereby quashed and set aside. It is further clarified that it is open for the respondents to initiate proper proceedings in accordance with law against the petitioner herein for the outstanding demand".
Take Aways: It is pertinent to observe that the writ was allowed on 28/07/2026 when several benches of GSTAT are already functional. There are few orders of the benches on GST matter which are from Thane bench as well as principal bench available in the public domain. Hence, it is suggested that taxpayer are free to seek remedy through first appeal as well as second appeal when they get the order noticed by them well in time. In exceptional cases as in the one above, writ is the one and only remedy which also worked well.
The GST officer could have easily invoked section 73, had he acted in time. Due to his inaction within the time line, Section 74 was invoked, which the taxpayer now must check whether the same invocation made as on 24/06/2025 in line with CBIC instructions dated 13/12/2023. It should be also argued that when it was possible to call on the taxpayer over phone in May 2026, why the same was not done at the time of issuing SCN as well as passing the order ?. Does it mean that the GST officer is categorical on his stand that he is above section 75 (4)?. Is it not a simple matter that when the registration stands cancelled, no purpose would be solved by uploading any notice or order in the GST portal ?. Is this done with awareness and ulterior motive to attract maximum interest as well as penalty by delaying issuance of SCN as well as passing OIO till the last moment and to invoke section 74?.
As GSTAT has started personal hearings, it is high time now for GST officials to desist from passing orders in violation the provisions of the GST Law.