Jurisdiction to issue a show cause notice under Section 74A arises from detected violations in monthly returns, allowing for action prior to annual return due date.

ORDER :

KRISHNAN RAMASAMY, J.

This writ petition has been filed challenging the impugned order dated 14.11.2025 passed by the 2^nd respondent.

2. Mr.R.Suresh Kumar, learned Additional Government Pleader, takes notice on behalf of the respondents.

3. By consent of the parties, the main petition is taken up for disposal at the stage of admission itself.

4. The learned counsel for the petitioner would submit that in this case, the show cause notice was issued in pre-mature manner. By referring Section 74A(2) of the GST Act, he would submit that the respondent is supposed to have issued the show cause notice only after the expiry of due date for filing the annual returns for the relevant assessment year and prior to the 42 months from the said due date. The present case is pertaining to the assessment year 2024-2025, for which, the due date for filing the annual return is on or before 31.12.2025. In such case, the jurisdiction arises, for issuance of show cause notice for AY 2024-25, only from 01.01.2026 onwards. However, without considering the same, the respondent had issued the show cause notice on 01.09.2025 in a pre-mature manner. Hence, this writ petition.

5. In reply, the learned Additional Government Pleader appearing for the respondent would submit that in this case, the notice was issued based on the tax period, which includes both monthly return and annual return.

6. Further, he would contend that only for the purpose of issuing show cause notice, pertaining to annual returns, the said limitation period would apply, however, there is no prohibition for issuance of show cause notice based on the monthly returns, if there is any default, commission or omission therein. Hence, he would submit that there is no fault on the part of the respondent in issuance of show cause notice and prays for dismissal of this petition.

7. Heard the learned counsel for the petitioner and the learned Additional Government Pleader appearing for the respondents and also perused the entire materials available on record.

8. The issue involved in this case is as to whether the show cause notice under Section 74A, pertaining to a particular assessment year, can be issued prior to the due date for filing annual returns for the relevant assessment year ?

9. The main contention of the petitioner was that the respondents are supposed to have issued notice in accordance with the provisions of Section 74A(2) of the GST Act. As per the said provision, the jurisdiction to issue show cause notice will not come into picture until the expiry of due date for filing of annual returns for the respective assessment year. In such case, according to the petitioner, since the issue is pertaining to the AY 2024-25, the respondents are supposed to have issued show cause notice only after the said due date, i.e., after 31.12.2025. However, in this case, the show cause notice was issued in a pre-mature manner on 01.09.2025.

10. At this juncture, it would be apposite to extract the meaning of the word “tax period” in terms of Section 2(106) of the GST Act, which reads as follows:

“2(106) “tax period” means the period for which the return is required to be furnished”

11. A reading of the above Section would show that “tax period” means the period, for which, the return is required to be furnished. Therefore, based on the filing of returns, the tax period will be determined. In GST Law, an Assessee is required to file monthly return as well as annual return. Therefore, based on the monthly return, the notice, under Section 74A, can also be iss