TaxTMI 
TaxTMI 
2026 (2) TMI 1420
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....otice dated 01/05/2025 issued under Section 74 of The Central Goods and Services Tax Act, 2017 (for short "CGST Act") by respondent no. 3-Joint Director, DGGI, Nagpur Zonal Unit and consequent order dated 30-12-2025 issued by respondent no. 2-Additional Commissioner (Adj.), CGST and C.Ex., Nagpur. The notice and order issued pertain from April-2018 to March-2023. The impugned proceedings, during this period, proceeded on the erroneous promise that petitioner rendered a composite supply of a taxable commercial training service along with hostel facility and thereby made short payments of Central Goods and Service Tax and availed ineligible input tax credit. 3] The argument is that clubbing of period, while issuing notice under Section 74 ....
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.... Scheme, it is evidently 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, b....
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...., where the transactions are spread across several years, a consolidated notice may in fact be required in such cases in order to establish the illegal modality adopted by such businesses and entities. The language of the legislation, itself, does not prevent issuance of SCN or order for multiple years in a consolidated manner." 7] The Counsel for respondent nos. 1 to 4 submits that the judgment of the Delhi High Court was tested before the Hon'ble Supreme Court in Special Leave Petition (Civil) Diary No. 50279/2025, wherein, the Supreme Court declined to interfere with the impugned judgment. Accordingly, the Counsel argued that the law laid down by the Delhi High Court has attained finality. 8] True it is that the judgment of th....
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....d recovery (Sections 39, 44, 37, 50, etc.). V] Time limit operate year by year. Section 73(10) and 74(10) of the CGST Act fix the time limit to issue an assessment order within three years (Section 73) or five years (Section 74) from the last date for filing annual return for the year to which the tax dues relate. VI] Consolidation would collapse these years, specific steps and grounds, harming the tax payers' ability to respond year by year and violating the explicit year wise structure of the statute. These niceties, in our view, were not considered by the Delhi High Court. 10] The Division Bench of this Court in Commissioner of Income-tax, Vidarbha and Marathwada, Nagpur Vs. Smt. Godavaridevi Saraf Tumsar [1978 (2) ELTJ 624 B....