time limit for issue of SCN and disposal thereof for penalties u/s 122,123,124,125,127,129,130

[SUSHIL BANSAL]

Dear experts,

Plz guide on time limit for issue of SCN and disposal thereof for penalties u/s 122,123,124,125,127,129,130

[Amit Agrawal]

Kindly note following portion of Para 6 from Apex Court ruling in case of GOVERNMENT OF INDIA VERSUS CITEDAL FINE PHARMACEUTICALS (1989 (7) TMI 100 - SUPREME COURT):

"......................In the absence of any period of limitation it is settled that every authority is to exercise the power within a reasonable period. What would be reasonable period, would depend upon the facts of each case. Whenever a question regarding the inordinate delay in issuance of notice of demand is raised, it would be open to the assessee to contend that it is bad on the ground of delay and it will be for the relevant officer to consider the question whether in the facts and circumstances of the case notice or demand for recovery was made within reasonable period. No hard and fast rules can be laid down in this regard as the determination of the question will depend upon the facts of each case."

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[KASTURI SETHI]

If penalties are integrally related to the demand SCN under Section 73 or 74, time limitation will be applicable mentioned therein, otherwise Not i.e. imposition of penalties are not time barred, if the offences are independent of the demand of tax on account of .non-levy/short levy.

Disclaimer : These are my personal views for education purposes and not for Court proceedings.

AI Summary

Debate on GST Show Cause Notices: Time Limits Under Sections 73 & 74 and Importance of Acting Reasonably A discussion on a forum regarding the time limits for issuing Show Cause Notices (SCN) and their disposal under various sections of the Goods and Services Tax (GST) Act. One participant referenced a Supreme Court ruling, highlighting that in the absence of a specific limitation period, authorities must act within a reasonable timeframe, which varies based on case specifics. Another participant noted that penalties linked to demand SCNs under Sections 73 or 74 are subject to time limitations, but independent penalties are not time-barred. Both contributors emphasized that their views are personal and not professional legal advice.