Lakshmi Bhanu Steel Traders Vs Assistant Commissioner (ST) (Telangana High Court)
Telangana High Court has declared a Goods and Services Tax (GST) assessment order against Lakshmi Bhanu Steel Traders invalid, ruling that it was passed beyond the statutory limitation period. The court’s decision underscores the strict adherence required to time limits in tax proceedings, even if the delay is minimal.
The writ petition, filed by Lakshmi Bhanu Steel Traders, challenged an order dated May 1, 2024, along with its summary in Form GST DRC-07 and related proceedings. The petitioner contended that these actions by the Assistant Commissioner (ST) were barred by limitation, lacked proper signatures, and violated several procedural norms under the CGST/SGST Act, 2017, and its rules.
Specifically, the petitioner argued that the final order was issued on May 1, 2024, whereas the last date for passing such an order was April 30, 2024. This one-day delay, according to the petitioner, rendered the entire order non-existent in the eyes of the law.
Further procedural irregularities alleged by the petitioner included:
- Issuance of the Summary of Show Cause Notice in Form DRC-01 on April 20, 2024, without observing the mandatory minimum three-month waiting period as per Section 73(2) of the CGST/SGST Act, 2017, before passing the final order.
- Failure to issue Form GST DRC-01A, as contemplated under Rule 142(1A) of the CGST Rules, 2017.
- Absence of a Document Identification Number (DIN) for the Show Cause Notice and the final order for the tax period 2018-19, which the petitioner argued was contrary to Circular No. 128/47/2019-GST, dated December 23, 2019, and a Supreme Court judgment.
During the hearing, counsel for both the petitioner and the respondents reached a consensus. They fairly submitted to the court that the impugned final order was indeed passed on May 1, 2024, while the last date for passing it was April 30, 2024.
