Court held that a minimal response time for a rectified show cause notice under GST regulations is inadequate and warrants extension.

1. Petitioner challenges a show cause notice dated 04.08.2024 and also seek directions to provide him with the clarifications requested for in Exhibit - P7 and Exhibit - P11.

2. Petitioner is a registered taxpayer primarily engaged in the business of production and distribution of films. By a notice dated 04.08.2024, the first respondent proposed to impose a tax of Rs.30.28 Crores under S.74 of the Central Goods & Services Tax Act / State Goods and Services Tax Act, 2017 (for short 'the CGST / SGST Act', apart from interest and penalty.

3. On receipt of the aforesaid notice, petitioner sought clarifications with regard to the aforesaid notice. When the clarifications sought for was not forthcoming, petitioner filed this writ petition, challenging the validity of the said notice, alleging it to be vague and requiring necessary clarifications. The writ petition was filed on 19.12.2024, and came up for consideration on 07.01.2025.

4. In the meantime, on 07.01.2025, petitioner was served with a rectified show cause notice dated 26.12.2024, issued under S.74 of the CGST / SGST Act. Petitioner alleges that the rectified show cause notice is a complete overhaul of the earlier notice and is issued after noticing the flaws pointed out in this writ petition. It was also pointed out that the time limit given in the present rectified notice to file an objection is only 7 days, which, according to the petitioner, is totally insufficient to give a proper reply.

5. Though the reliefs sought for in the writ petition was against Exhibit - P2 show cause notice, in view of the subsequent notice superceding the earlier notice, petitioner confined his relief to the grant of a reasonable time to file an objection to the rectified show cause notice.

6. I have heard Sri Joseph Kodianthara, the learned Senior Counsel instructed by Sri. Abraham Joseph Markos and Smt. Jasmin M.M., the learned Government Pleader.

7. On noticing the inclination of this court to grant a reasonable time to file a reply to the rectified show cause notice, the learned Government Pleader pointed out that the limitation period to pass orders may expire if further time is granted to reply to the show cause notice. However, the learned Senior Counsel for the petitioner submitted that the question of limitation will not be canvassed or pressed by the petitioner, if a reasonable time is granted to him submit a proper reply to the rectified show cause notice.

8. Bearing in mind the aforesaid submissions and having regard to the circumstances pointed out, I am of the view that the time limit of 7 days given to the petitioner to reply to the rectified show cause notice is too minimal a period. However, taking into reckoning the possibility of the period of limitation to pass orders expiring on 05.02.2025, the request of the petitioner, if acceded to, must necessarily require extending the period of limitation as conceded on behalf of the petitioner.

9. In the result, the time limit specified for filing a reply in the rectified show cause notice dated 26.12.2024 shall stand extended by a further period of three weeks from today, and the officer shall pass appropriate orders within four weeks of hearing the petitioner. It is clarified that if the time limit to pass orders expires within the period so granted above, the said time limit shall stand extended till the date mentioned above, and petitioner shall not be entitled to take up the issue of limitation as a defence.