Tag: Time limit for issue of SCN

Show Cause Notice and Order are issued on the same date – Order Set Aside

In the case of Pithamber Distributors Vs. Assistant Commissioner (ST) W.P. No. 11337 of 2024, [2024] 162 taxmann.com 630 (Madras), Impugned Order and the Show Cause Notice, both were issued on 31/12/2023.

Petitioner has submitted that:

  1. The facts speak of themselves and the order and SCN are issued on the same date (Opportunity of being heard is not provided)
  2. SCN was issued in breach of Section 73(2) of CGST Act, 2017 (SCN needs to be issued at least 3 months prior to the time-limit for issue of order u/s. 73(10), which is 3 years from the due date for furnishing Annual Return)

Hon’ble High Court of Madras has held that:

  1. The contention of the petitioner that a reasonable opportunity was not provided is liable to be accepted. Since both the show cause notice and impugned order were issued on the same date, the impugned order is unsustainable.
  2. Consequently, impugned order dated 31.12.2023 is set aside by leaving it open to the respondent to initiate proceedings in accordance with law.