M/S. Sri Durga Bhavani Enterprises vs Assistant Commissioner State Tax
2025 Latest Caselaw 4473 Tel

Telangana High Court

M/S. Sri Durga Bhavani Enterprises vs Assistant Commissioner State Tax on 3 April, 2025

     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 India 1.

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.

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