Case Title: M/s. Sri Durga Bhavani Enterprises v. Assistant Commissioner (State Tax), Basheerbagh-2 Circle & Others
Court: High Court for the State of Telangana, Hyderabad
Petition Number: W.P. No. 9924 of 2025
Date of Judgment: 03 April 2025
Category of Dispute: Limitation in assessment proceedings – Section 73 of CGST Act, 2017
Relevant Sections: Section 73(2) and Section 73(10) of CGST Act, 2017
Facts (Para 2–3)
M/s. Sri Durga Bhavani Enterprises, the petitioner, challenged the show cause notice dated 30.11.2024 and the consequent assessment order dated 28.02.2025 issued under Section 73 of the CGST and TSGST Acts for FY 2020–21. The petitioner argued that the notice was time-barred as it was issued after the statutory deadline prescribed under Section 73(10), which allows issuance only up to three months prior to the expiry of the limitation for the final order.
Questions before the Court
Whether a show cause notice issued beyond the period prescribed under Section 73(2) read with Section 73(10) of the CGST Act, 2017 renders the assessment order void for want of jurisdiction.
Observations (Para 3–5)
The Court noted that for FY 2020–21, the limitation to issue a show cause notice under Section 73(2) expired on 28.11.2024, as the final order under Section 73(10) was required to be passed by 28.02.2025. However, the Department issued the notice on 30.11.2024, two days beyond the permissible period. The respondents did not dispute the factual dates. Relying on the Andhra Pradesh High Court ruling in M/s. The Cotton Corporation of India v. Assistant Commissioner (ST) (Audit) (FAC), State of Andhra Pradesh (2024), the Telangana High Court reaffirmed that adherence to the statutory time frame is mandatory and non-compliance renders proceedings void.
Judgment (Para 6)
The High Court held that the show cause notice was issued beyond the statutory limitation and hence the resultant assessment order dated 28.02.2025 could not be sustained. Consequently, the assessment order was set aside, and the writ petition was allowed without costs. All connected interlocutory applications were also closed.
Summary of Cases Referred
| Case Name | Court | Key Finding |
|---|---|---|
| M/s. The Cotton Corporation of India v. Assistant Commissioner (ST) (Audit) (FAC), State of Andhra Pradesh (2024) | Andhra Pradesh High Court | Show cause notice issued beyond limitation under Section 73(2) is invalid and renders assessment void. |
Between Fine Lines
This judgment underscores that timely issuance of show cause notice under Section 73(2) is a jurisdictional requirement, not a procedural formality. Even a delay of two days invalidates the assessment order. Businesses and tax officers must vigilantly monitor limitation timelines under Section 73 to prevent unenforceable demands.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
