Vadakkoot Chackoo Devassy vs. Assistant State Tax Officer

Held

The High Court held that the assessment orders were passed in violation of natural justice and mandatory procedures under Section 73(5) and (8), as insufficient time was given to respond to notices. Since the statutory limitation for passing an order under Section 73(9) for FY 2017-18 expired on 31/12/2023, the defects could not be cured by a fresh order. Consequently, the High Court quashed the assessment orders.

Facts

The appellant's GST registration was cancelled, and belated returns for FY 2017-18 were filed. The tax authority issued a scrutiny notice under Section 61, followed immediately by a show cause notice under Section 73(1) and a summary order, culminating in an assessment order under Section 73(9) and Rule 142(5). The appellant challenged these orders on grounds of limitation and natural justice, which the Single Judge partly allowed by remanding the matter but disallowing the limitation argument.

Key Issues

Whether the assessment orders were barred by limitation and if they violated principles of natural justice and mandatory procedural requirements under the CGST Act, particularly regarding the timelines for issuing notices and allowing time for response.