SCN u/s 75(10) of CGST Act issued after 30 days period is without Jurisdiction: Gujarat HC rules in favour of IndusInd Bank [Read Order]
when the period prescribed is three months as contrasted from 90 days from a specified date the said period would expire in the third month on the date corresponding to the date on which the period starts
indusland bank
indusland bank
In a recent case, the Gujarat High Court ruled in favour of IndusInd Bank, holding that a show cause notice (SCN) under section 75(10) of the Central Goods andService Tax Act (CGST Act), 2017, issued after a 30-day period is without jurisdiction. It was observed that when the period prescribed is three months as contrasted from 90 days from a specified date, the said period would expire in the third month.
IndusInd Bank Limited, the petitioner, submitted that the respondent authority has issued the show cause notice in violation of the provisions of Section 75(10) of the Central Goods and Services Tax Act, 2017 ( “the CGST Act”). It was pointed out that the last date of furnishing the annual return as per Rule 80 of the CGST Rules in case of petitioner for the period 2020-21 was 28.02.2022 and therefore the due date of issuance of order is three years and as per provisions of Section 75(10) of the CGST Act due date of issuance of notice would be 28.11.2024, whereas in the facts of the case, the show cause notice had been issued on 30.11.2024.
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It was submitted that in the identical facts the Andhra Pradesh High Court in the case of M/s. The Cotton Corporation of India v. Assistant Commissioner (ST) (AUDIT) (FAC), State of Andhra Pradesh, Union of India reported in 2025 has quashed and set aside the order in original as the show cause notice was beyond the prescribed mandatory period of three months issued on 30.11.2024 instead of 28.11.2024.
The ruling of Telangana High Court in the case of M/s. Sri Durga Bhavani Enterprises v. Assistant Commissioner State Tax reported in 2025 wherein, the aforesaid decision of the Andhra Pradesh High Court is followed.
Advocate for the petitioner also referred to and relied upon the decision of the Apex Court in case of State of Himachal Pradesh & Anr., v. Himachal Techno Engineers & Anr., reported in (2010) wherein it is held by the e Apex Court that when the period prescribed is three months as contrasted from 90 days from a specified date the said period would expire in the third month on the date corresponding to the date on which the period starts.
A division bench of Justice Bhargav D. Karia and Justice Pranav Trivedi observed that the three months would be over on 28.11.2024 and therefore, the show cause notice dated 30.11.2024 would be without jurisdiction and as a consequence thereof, the impugned order in original would be without jurisdiction.
Considering the submissions, the court issued Notice returnable on 17.07.2025 and permitted direct Service through E-mail.
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