Indusind Bank Limited Vs State of Gujarat & Ors (Gujarat High Court)
The Gujarat High Court is currently considering a petition filed by Indusind Bank Limited, challenging the validity of a Show Cause Notice (SCN) issued by tax authorities under Section 75(10) of the Central Goods and Services Tax (CGST) Act, 2017. The bank argues that the notice was issued beyond the statutory period, rendering it without jurisdiction.
During the hearing, Mr. Prasad Paranjape, representing Indusind Bank, contended that the SCN, dated November 30, 2024, for the assessment period 2020-21, exceeded the legally permissible timeframe. He highlighted that the due date for furnishing the annual return for the petitioner for 2020-21 was February 28, 2022. Consequently, according to Section 75(10) of the CGST Act, which stipulates a three-year period for issuing an order from the return’s due date, the corresponding deadline for the SCN would have been November 28, 2024. The bank asserts that the notice, issued two days later, is therefore jurisdictionally flawed.
To bolster its argument, Indusind Bank presented several judicial precedents. The Andhra Pradesh High Court’s ruling in M/s. The Cotton Corporation of India v. Assistant Commissioner (ST) (AUDIT) (FAC) (2025 (2) TMI 362) was cited, where an original order was quashed due to the show cause notice being issued beyond the mandatory period. This principle, the bank noted, was subsequently adopted by the Telangana High Court in M/s. Sri Durga Bhavani Enterprises v. Assistant Commissioner State Tax (2025 (4) TMI 1148).
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