• Dated 09^th May, 2025

The order was liable to be quashed as it was issued beyond the limitation period for FY 2017-18: High Court:

The Allahabad High Court quashed an assessment order under GST laws, ruling that it was issued beyond the limitation period prescribed under the Uttar Pradesh GST Act, 2017, thereby rendering the order unsustainable in law.

Background of the case: -

The petitioner was issued with Show cause notice dated 21.09.2023 and demand order dated 14.12.2023 relating to the Financial Year 2017-2018 by the Assistant Commissioner of State Tax, which was challenged by the petitioner before the Hon'ble Allahabad High Court through a writ of mandamus.

Petitioner's Contention: -

• The petitioner primarily argued that the notices were time-barred, relying on a judgment of the Hon'ble Allahabad High Court, which had directed the de-freezing of a petitioner's bank account in a similar case, holding that proceedings initiated beyond the limitation period could not be entertained.
• The petitioner argued that the impugned orders are barred under Section 73(10) of the U.P GST Act 2017 as they have been passed beyond the time limit prescribed therein as calculated from due date of filing annual returns prescribed in section 44 (1) which was extended to 05.02.2020 and the time limit of three years ended on 05.02.2023 but the impugned orders dated 02.12.2023 and 05.10.2024, therefore, the impugned orders are without jurisdiction.

Respondent's Contention: -

• The impugned orders has been passed under Section 73 (9) & (10) of the Act for the Financial Year 2017-2018 wherein, reliance is being placed upon a Notification No- 515/XI-2-23-9(47)/17-T.C.215-U.P,Act-1-2017-Order(273)-2023 dated 24.04,2023 by which the time limit of three years mentioned in sub Section 73(10) of the said Act was extended for the financial year 2017-18 up to 31.12.23.

Held:-

• The Hon'ble High Court while quashing the petition held that an order under Section 73(9) of the said Act pertaining to financial year 2017-18 could have been passed by 05.02.2023 but not thereafter. The notification dated 24.04.2023 has been considered and the contention that such an order could have been passed till 31.03.2023 has been repelled The extended deadline to issue the tax order for FY 2017–18 was February 5, 2023. A later notification dated April 24, 2023, cannot apply, as it is effective only from March 31, 2023, and the original time limit had already expired before that. Now in the case at hand the order under Section 73(9) of the said Act has been passed 14.12.2023, therefore, it is clearly time barred.

Ambrish Chandra Arya Vs State of UP [(2025) 29 Centax 118 (All.) 25.03.2025]

Author: Pritam Ghosh

Edited by: Shaily Gupta