A. M. Marketplaces Pvt. Ltd. Vs Union of India (Bombay High Court)
Time gap of 3 months mandated between SCN issuance and Order under Section 73 CGST Act: Bombay High Court (Nagpur Bench)
The Bombay High Court (Nagpur Bench) held that a mandatory minimum gap of three months must be maintained between issuance of a show cause notice under Section 73(2) and passing of an order under Section 73(10) of the CGST Act. In this case, the notice was issued on November 18, 2024 and the final order was passed on January 31, 2025, leaving a gap of about two months and 13 days. The Court ruled that this shortened period violated the statutory intent of Section 73, which ensures meaningful opportunity of hearing, compliance with principles of natural justice, service of detailed statements under Section 73(3), and the option of voluntary payment under Section 73(5). It held that reducing the three-month window renders these protections otiose and prejudices the taxpayer. Consequently, the show cause notice and final order were quashed and the matter remanded for fresh adjudication in accordance with law.
Facts:
A. M. Marketplaces Pvt. Ltd., New Delhi (‘the Petitioner’) challenged the Show Cause Notice dated November 18, 2024 and the final order dated January 31, 2025 passed by the Union of India through, Department of Revenue, New Delhi and Others (‘the Respondents’) under Section 73 of the CGST Act, resulting in a time gap of about two months 13 days.
