2026 (3) TMI 247

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....4] Challenge is to show cause notice dated 10/01/2025 issued by respondent no. 2 - Assistant Commissioner, CGST & CX, Nagpur-II under Section 74(1) of The Central Goods and Services Tax Act, 2017 (for short "CGST Act") and applied mutatis mutandis corresponding provisions of the Maharashtra Goods and Services Tax Act, 2017 and Integrated Goods and Service Tax Act, 2017. The notice issued pertain from September, 2020 to July, 2023 (Financial years 2020-21 to 2023-24), saying that the petitioner has, during this period, suppressed taxable value, and thereby made short payments of Central Goods and Service Tax to the tune of Rs. 1,69,57,069/-. 5] The argument is that clubbing of period, while issuing notice under Section 74 of the CGST Act,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ly clear to us that the statutory provision for assessment of tax for each financial year expect the Show Cause Notice to be issued at least 3 months prior to the time limit specified in Section 73(10) and 74(10) of the Act, for issuance of assessment order as sub-section (10) provide that the proper officer shall issue the order within a period of five years from the due date for furnishing of annual Return for the financial year to which the tax not paid/short paid or input tax credit wrongly availed or utilised relates to or within five years from the date of erroneous Return. Thus, there is limitation prescribed for demand of tax and its recovery. The Act of 2017, therefore involve a definite tax period, based on the filing of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....CGST Act that would permit the respondents to issue consolidated notices in a case where fraudulent availment of income tax credits is alleged. The only distinction is that in such a case, the show cause notice could be issued within five years from the date of furnishing annual returns for a particular financial year. Thus, the respondents cannot raise a plea of fraudulent availment of income tax credits to club the notices for various financial years. 11] The Counsel for respondents then opposed the contentions by saying that clubbing of notice is permissible. She referred to the judgment of the Division Bench of the High Court of Delhi in M/s Mathur Polymers Vs. Union of India & Ors. [W.P.(C) 2394/2025 decided on 26/8/2025], wherein, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... I] The GST Scheme is based on annual returns for each financial year (even if returns are filed monthly in practice, the liability is tied to a specific financial year). II] The statute fixes a five year time limit for demanding and recovering tax from due date for furnishing annual return for that year or from the date of erroneous return (Sections 73(10) and 74(10) of the CGST Act as applicable). This limit runs separately for each year. III] If issued a single SCN covering multiple years, one would be aggregating different tax period with different due dates and different limitations, which the statute does not permit. IV] Tax period is defined (Section 2(106) of the CGST Act) as the period, for which th....