Case Law Details
Titan Company Ltd. Vs Joint Commissioner of GST & Central Excise (Madras High Court)
Madras High Court Rejects Bunching of Show Cause Notices to Extend Limitation Period: A Critical Analysis of Titan Company Ltd. Vs Joint Commissioner of GST & Central Excise
Introduction: The Madras High Court recently delivered a significant judgment in the case of Titan Company Ltd. vs. Joint Commissioner of GST & Central Excise, addressing the issue of bunching of show cause notices under the CGST Act, 2017. The petitioner sought a Writ of Mandamus directing the respondent to consider and pass orders on their representation before proceeding with the adjudication of show cause notices dated 28.09.2023.
Background: The petitioner’s primary contention was that the respondent had issued a bunching of show cause notices for five Assessment Years, starting from 2017-18 to 2021-22. The petitioner argued that such bunching was impermissible under Section 73 of the CGST Act, as it only allows the determination of tax within a specified limitation period and prohibits extending the period through bunching of notices.
Legal Arguments: The petitioner’s counsel, Mr. N.L. Rajah, contended that Section 73(10) of the Act imposes a three-year limitation period for determining tax from a person, calculated from the due date for furnishing the annual return for the relevant financial year. The petitioner argued that the bunching of show cause notices was an indirect attempt to extend the limitation period, which goes against the statutory provisions.
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