Order Passed Beyond Five-Year Limit Under Section 74 of GST Act; Stay on Proceedings Granted

The HC held that the impugned order was passed beyond the five-year limitation period prescribed under section 74 of the GST Act, 2017. The court granted a stay on all proceedings arising from the assessment order dated 04.02.2025. The matter was adjourned for further hearing after the respondents file their counter-affidavit.

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The Andhra Pradesh High Court, presided by Justices R Raghunandan Rao and Sumathi Jagadam, addressed a petition challenging an assessment order dated 04.02.2025 for the assessment year 2017-2018. The petitioner argued that although the order bears the date 04.02.2025, it was actually digitally signed on 12.02.2025, thus exceeding the five-year limitation period prescribed under Section 74 of the GST Act, 2017, which expired on 07.02.2025. The petitioner relied on the Document Identification Number (DIN) affixed to the order-DIN3712022541522-where the digits "37120225" indicate the order was passed in Andhra Pradesh on 12.02.2025, confirming the delay. The petitioner contended that "once a part of the order is beyond limitation," the entire order should be set aside and the matter remanded for fresh proceedings. The Court granted a stay on all further proceedings pursuant to the impugned order and directed the respondent to file a counter-affidavit before the next hearing.

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