GST Assessment Order Passed Beyond Limitation Period is Invalid, Even if by One Day: Telangana HC [Read Order]
Telangana HC: GST Order Passed Beyond Limitation Period is Invalid, Even if by One Day
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Telangana High Court held that a GST assessment order passed even a day beyond the limitation period is invalid and unenforceable. The Telangana High Court ruled that a GST assessment order passed beyond the limitation period is invalid, even if by one day, and must be set aside along with any consequential bank attachment orders. Lakshmi Bhanu Steel Traders, the petitioner, filed...
Telangana High Court held that a GST assessment order passed even a day beyond the limitation period is invalid and unenforceable.
The Telangana High Court ruled that a GST assessment order passed beyond the limitation period is invalid, even if by one day, and must be set aside along with any consequential bank attachment orders.
Lakshmi Bhanu Steel Traders, the petitioner, filed a writ petition challenging the GST assessment order dated 01.05.2024, the summary of order in Form GST DRC-07, and the garnishee order issued to the petitioner’s bank, on the ground that the order was barred by limitation under the CGST/SGST Act.
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The petitioner’s counsel argued that under Section 73 of the CGST Act, the order should have been passed within three years from the due date of filing the annual return for the financial year 2018-19, which expired on 30.04.2024, but the impugned order was passed on 01.05.2024, rendering it time-barred.
They argued procedural violations, including the absence of a Document Identification Number (DIN) and non-compliance with Circular No. 128/47/2019-GST, as well as the Supreme Court’s guidelines in W.P.(Civil) No. 320 of 2022.
The counsel for the petitioner argued that the department's failure to adhere to the statutory timeline and procedural requirements invalidated the proceedings, warranting the quashing of the order and the related garnishee notice.
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The government counsel fairly submitted during the hearing that the last date for passing the order was 30.04.2024, and the order was passed on 01.05.2024, acknowledging the limitation breach.
The division bench comprising Acting Chief Justice Sujoy Paul and Justice Renuka Yara observed that since the limitation period expired on 30.04.2024, the order passed on 01.05.2024 was beyond the statutory time limit. Hence, unsustainable in law.
The court held that the GST assessment order dated 01.05.2024 and the consequential bank attachment, if any, must be set aside as the order was passed beyond the limitation period. The writ petition was allowed, with no order as to costs.
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