A. M. Marketplaces Pvt. Ltd. Vs Union of India (Bombay High Court)
The Bombay High Court considered a writ petition in which the petitioner did not press prayer clauses (c) and (d). Earlier, by an order dated 9 January 2025, the Court directed the Registry to examine affidavits of service and record categorical remarks regarding service upon respondents. The Court also directed the Registrar (Judicial) to issue appropriate instructions or a circular so that the practice would be followed in all cases.
The principal issue before the Court was whether a mandatory gap of three months must be maintained between the issuance of a notice under Section 73(2) of the Central Goods and Services Tax Act, 2017 (CGST Act) and the passing of the adjudication order under Section 73(10) of the CGST Act. The petitioner relied upon decisions of the Delhi High Court and the Andhra Pradesh High Court interpreting these provisions.
The Court referred to the Delhi High Court judgment in C.H. Robinson Worldwide Freight India Pvt. Ltd. Vs. Additional Commissioner, CGST-Delhi-South and ors., which in turn relied upon Tata Play Limited vs. Sales Tax Officer Class II/AVATO. Those decisions interpreted Sections 73(2) and 73(10) of the CGST Act to hold that while Section 73(10) prescribes the outer time limit for passing an adjudication order, Section 73(2) requires that a show cause notice be issued at least three months before that outer limit. The Delhi High Court observed that the purpose of Section 73(2) is to ensure that the taxable person has a minimum period of three months to file a reply to the show cause notice and to be heard properly. It further observed that the statutory scheme also contemplates service of a statement containing details of the proposed demand under Section 73(3) and permits the noticee under Section 73(5) to make payment by self-assessment within thirty days of the show cause notice, without penalty. According to the Delhi High Court, the three-month period prescribed by Section 73(2), read with Section 73(10), is mandatory.
