Limitation under GST recovery: an order passed beyond the five-year statutory period was held void for want of jurisdiction.

An order under Section 74(10) of the CGST Act must be passed within five years from the due date of the annual return for the relevant financial year, and that limitation is mandatory. For FY 2017-18, the due date was extended to 05.02.2020, so the outer limit expired on 05.02.2025. An order dated 30.12.2025 was therefore time-barred, the authority had become functus officio, and the order was without jurisdiction. The impugned demand order and consequential DRC-07 were quashed, and the writ petition succeeded.

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Issues: Whether the order-in-original passed under Section 74(10) of the Central Goods and Services Tax Act, 2017 was barred by limitation and without jurisdiction.

Analysis: Section 74(10) requires the proper officer to pass an order within five years from the due date for furnishing the annual return for the relevant financial year. The due date for the financial year 2017-18 stood extended to 05.02.2020, making 05.02.2025 the outer limit for passing the order. The impugned order dated 30.12.2025 was beyond that period, and the delay was fairly admitted. The statutory limitation was treated as mandatory and incapable of relaxation, with the result that the authority had become functus officio.

Conclusion: The order was held to be barred by limitation and without jurisdiction, and the challenge succeeded in favour of the assessee.

Final Conclusion: The impugned demand order and consequential DRC-07 were quashed, and the writ petition was allowed.

Ratio Decidendi: An order under Section 74(10) of the Central Goods and Services Tax Act, 2017 passed beyond the prescribed five-year period from the due date of the annual return is void for want of jurisdiction.

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