Bengal Cold Rollers Private Limited Vs Assistant Commissioner (ST) (Supreme Court of India)
Supreme Court to examine whether the six-month time limit for issuance of show cause notice under Section 74(2) of the CGST Act is mandatory or directory
The Supreme Court issued notice in the writ petition and special leave petition challenging the Telangana High Court judgment holding that the six-month time limit under Section 74(2) of the Central Goods and Services Tax Act, 2017 for issuance of a show cause notice is directory and not mandatory. The Court noted that the controversy concerns whether the statutory timeline under Section 74(2), requiring issuance of the show cause notice at least six months before the time limit under Section 74(10) for passing the adjudication order, is jurisdictional or merely procedural in the absence of an express consequence for non-compliance. The Court observed that the petitioner’s submissions regarding limitation provisions in a taxing statute and the divergent views of various High Courts warranted consideration. It directed issuance of notice, returnable on September 28, 2026, and ordered that the Orders-in-Original dated April 22, 2026 relating to Financial Years 2021-2022, 2022-2023 and 2023-2024, as well as the operation of the impugned Telangana High Court judgment dated June 25, 2026 and the Order-in-Original challenged therein, shall remain stayed until the next date of hearing.
