TaxTMI 
TaxTMI 
An analysis of para 8 of Supreme Court order dated 19/08/2026 in G R Infra Projects Limited case.
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....n analysis of para 8 of Supreme Court order dated 19/08/2026 in G R Infra Projects Limited case.<br>By: - K Balasubramanian<br>Goods and Services Tax - GST<br>Dated:- 28-8-2026<br>An analysis of para 8 of Supreme Court order M/s G.R. Infra Projects Limited Ratlam Versus The State of Madhya Pradesh & Ors. - 2026 (8) TMI 1497 - SC Order. The Supreme Court was examining the issue on validity of invoking section 74 in an inappropriate manner by way of simply reproducing the three words used in Section 74 as 1) Fraud or 2) any wilful-misstatement or 3) suppression. The Act uses the word or at two places in section 74 as fraud or misstatement or suppression to emphasize that at least one element must be present to invoke section 74. The m....
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....echanical reproduction of section 74 in the show cause notice especially with or in between 1 and 2 as well as 2 and 3 as above clearly shows that the proper officer while issuing the SCN has not identified the exact element/ elements which is/are used to invoke section 74. Accordingly, the Supreme Court has categorically ruled that invocation of section 74 is not sustained. However, while computing the applicability of limitation under section 73, the observations of the Supreme Court are analyzed in this article as below. Para 8 of the order reads as "8. In the meanwhile, COVID struck and this Court in Writ Petition (C) No.3/2020 registered as Cognizance For Extension of Limitation [2022 (1) TMI 385 - SC Order], extended the limitation....
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.... as provided in the various statutes, in the wake of the pandemic and eventually by order dated 01.01.2022, the Suo Motu Writ Petition was disposed of with directions, inter alia providing for exclusion of limitation for the period between 15.03.2020 to 28.02.2022. While computing limitation, the period excluded by this Court coming within the three-year period for 2018-2019 is 1 year and 2 months, which has to be excluded and further time provided from 31.12.2023 in lieu of the excluded period. Hence, the extended period of limitation falls on 28.02.2025. The SCN issued in this case on 13.06.2025 for the assessment year 2018-2019 definitely hit by limitation under Section 73. Now the question is as to whether Section 74 can be invoked". ....
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.... The above observation is highly technical and hence an attempt is made to explain the underlying concept in simple words with respect to Section 73. It is absolutely essential to exclude the period commencing from 15/03/2020 till 28/02/2022 in computing limitation under section 73 for issuing the SCN exactly to the extent to which the above referred period falls during the relevant period for computing the limitation. For every year, the number of days that fall within 15/03/2020 till 28/02/2022 has to be excluded which is explained with an example under section 73. The best example would be the financial year 2020-21 which has impact as well as financial year 2021-22 which has no impact as analyzed below: Table 1. Financial year 2020-2....
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....1 Return due date 31/12/2021 Limitation count 01/01/2022 to 30/09/2024 for SCN (normal) No of days to be excluded 01/01/2022 to 28/02/2022 say two months Revised SCN date 30/11/2024 as against 30/09/2024 Any impact Nil as on date Table 1. Financial year 2021-22 Return due date 31/12/2022 Limitation count 01/01/2023 to 30/09/2025 No of days to be excluded Nil Revised SCN date 30/09/2025 as above Any Impact Nil However, there is a danger for the taxpayers as well as cushion for the GST officials under section 74 for the financial year up to 2020-21 The views expressed by the author got again endorsed by the Supreme Court on 25/08/2026 which reads as "7. While matters stood t....
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....hus, the pandemic struck, paralyzing every activity, world over and this Court took suo motu cognizance of the difficulties of the litigants, due to the rigor of limitation and that of the statutory authorities, enjoined with timelines provided under the various enactments. Suo Motu Writ Petition (C) No.3 of 2020 registered as IN RE Cognizance for Extension of Limitation extended the period of limitation as provided in various statutes and eventually by order dated 01.01.2022, the Writ Petition was disposed of with directions, inter alia providing for exclusion of limitation for the period between 15.03.2020 to 28.02.2022. Hence, the said exclusory period coming within the limitation period of three years had to be excluded and the limitati....
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....on pushed further to that extent. As noticed above the last date for furnishing the annual returns of 2018-2019, 2019-2020 and 2020-2021 as per the various notifications under Section 44 were respectively 31.12.2020, 31.03.2021 and 28.02.2022. The limitation ought to have expired at three years, respectively on 31.12.2023, 31.03.2024 and 28.02.2025. One year and two months within the period of limitation of 2018-2019 and eleven months within the period of three years limitation of 2019-2020 falls within the period relaxed by this Court. Thus, the limitation from the last date of furnishing of annual returns stands extended to 28.02.2025 for the above two years and for the year 2020-2021, it remains unchanged at 28.02.2025, since even as per....
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.... the statute and notifications period of limitation only commenced on 28.02.2022, the extension granted by this Court being inapplicable. The SCN dated 13.06.2025 is past the extended limitation period". Citation: M/s. Tata Steel Limited Versus Union of India through the Secretary Ministry of Finance and Ors. - 2026 (8) TMI 1587 - Supreme Court. Conclusion: Two recent supreme court decisions have confirmed the view that for issuing the show cause notice, the limitation period as applicable is to be examined and in case it falls during 15/03/2020 till 28/02/2022, the exact period which fell so has to be excluded which extends the time limit. While this may not be having any impact on section 73, in cases where section 74 is approp....
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....riate, there seems to be a cushion of two months for the financial year 2020-21. =============<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....