THE HON’BLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HON’BLE SMT. JUSTICE RENUKA YARA WRIT PETITION No.9924 of 2025 ORDER (Per the Hon’ble the Acting Chief Justice Sujoy Paul)

Sri Y. Siri Reddy, learned counsel for the petitioner;

Sri Swaroop Oorilla, learned Special Government Pleader for State Tax, for respondent Nos.1 to 3 and Sri B. Mukherjee, learned counsel representing Sri Gadi Praveen Kumar, learned Deputy Solicitor General of India, for respondent No.4.

2. With the consent, finally heard.

3. Learned counsel for the petitioner submits that the impugned show cause notice was issued beyond the permissible statutory limitation. The tax period is 2020-2021. The impugned show cause notice was issued on 30.11.2024 and the impugned assessment order was passed on 28.02.2025. A conjoint reading of Section 73(2) and (10) of the Central Goods and Services Tax Act, 2017 (for short, ‘the Act’), made it permissible for the respondents to issue the show cause notice upto 28.11.2024 whereas, in the present case, it was issued on 30.11.2024 and therefore, it is beyond the statutory period of limitation. Reliance is placed on the judgment of Andhra Pradesh High Court in M/s. The Cotton Corporation of India v. Assistant Commissioner (ST) (Audit) (FAC), State of Andhra Pradesh, Union of India1

4. Learned Special Government Pleader for State Tax formally opposed the petition. However, he did not dispute the facts regarding tax period, issuance of impugned show cause notice and date of passing of impugned assessment order.

5. We find substance in the argument of learned counsel for the petitioner that a combined reading of Section 73(2) and (10) of the Act permits the Department to issue show cause notice upto three months prior to the passing of the assessment order. The assessment order was passed on 28.02.2025 and therefore, the show cause notice could have been issued upto 28.11.2024. Whereas, in the instant case, it was issued on 30.11.2024. Similar view was taken by the Andhra Pradesh High Court in M/s. The Cotton Corporation of India (supra). In view of the statutory provisions and interpretation by the Andhra Pradesh High Court, we find substantial force in the argument of learned counsel for the petitioner that the impugned assessment order cannot sustain judicial scrutiny.

1 2025 (2) TMI 362-Andhra Pradesh High Court

6. Resultantly the impugned assessment order dated 28.02.2025 is set aside and the Writ Petition is allowed to the extent indicated above. No costs.

Interlocutory applications, if any pending, shall also stand closed.

SUJOY PAUL, ACJ RENUKA YARA, J

Date: 03.04.2025

Myk/Tsr