- Assistant Commissioner of CGST and Central Excise Vs Baskar Selvakumar (Madras High Court)
- Background of the Writ Appeal
- Assessee’s Submission on Section 74 and Section 74-A
- Finding on the Applicable Provision
- Court’s Clarification on Jurisdiction
- Direction to Issue Fresh Notice Under Section 74-A
- Final Decision
Assistant Commissioner of CGST and Central Excise Vs Baskar Selvakumar (Madras High Court)
Summary: The Revenue Officials/respondents filed the writ appeal against the order dated 03.02.2026 passed by the learned Single Judge in W.P.(MD)No.2625 of 2026. The writ petition had been filed by the assessee challenging an order dated 24.11.2025 relating to the financial year 2024-25 / assessment year 2025-26, pursuant to a show cause notice issued under Section 74 of the Goods and Service Tax Act.
The assessee’s main grievance was that Sections 73 and 74 of the GST Act stood repealed on and from the financial year 2024-25 and Section 74-A had been introduced. On that basis, it was contended that the notice for the relevant financial year should have been issued under Section 74-A rather than Section 74.
The learned Single Judge accepted the contention and directed issuance of a fresh notice under Section 74-A and compliance with the procedure prescribed thereunder. The Single Judge had also observed that the notice issued under Section 74 had been issued “without any jurisdiction”.
In the writ appeal, the Division Bench clarified that this characterization of the notice as having been issued “without any jurisdiction” may not be the proper position. The Court observed that the notice had been issued under a wrong provision of law, which had to be corrected. The Court expressly stated that it had not examined the jurisdiction aspect of the Officer who issued the notice.
The writ appeal was accordingly disposed of with a direction to the appellant/Revenue Officials to follow the procedure enunciated under Section 74-A of the GST Act and issue a fresh notice following due procedure for the financial year 2024-2025. The connected miscellaneous petition was closed and there was no order as to costs.
Background of the Writ Appeal
The writ appeal was filed by the Revenue Officials/respondents in W.P.(MD)No.2625 of 2026 against the order of the learned Single Judge dated 03.02.2026.
The underlying writ petition had been instituted by the assessee against an order dated 24.11.2025 relating to the financial year 2024-25 / assessment year 2025-26. The Revenue had issued a show cause notice under Section 74 of the Goods and Service Tax Act and thereafter passed the impugned assessment order.
Assessee’s Submission on Section 74 and Section 74-A
The main grievance raised in the writ petition was that Sections 73 and 74 of the GST Act stood repealed on and from the financial year 2024-25 and that Section 74-A had been introduced.
On that basis, it was contended that any notice concerning the relevant financial year should have been issued only under Section 74-A and not under Section 74, which was stated to be a redundant provision for the relevant period.
The distinction between the provisions is also addressed in TaxGuru’s publication on the new Section 74A.
Finding on the Applicable Provision
The Court recorded as a fact that Sections 73 and 74 had been wiped out from the statute book on and from the financial year 2024-25 and that only Section 74-A had been introduced.
On that basis, the learned Single Judge had directed that a fresh notice be issued under Section 74-A and that the procedure under that provision be followed.
The Division Bench, however, clarified the characterization of the earlier notice. While the notice had been issued under a wrong provision of law, the Court stated that describing it as having been issued “without any jurisdiction” may not be the proper position.
Court’s Clarification on Jurisdiction
The Court specifically stated that the notice had been issued under a wrong provision of law which had to be corrected.
At the same time, the Court made it clear that it had not examined the jurisdiction aspect of the Officer who issued the notice. Accordingly, the Court’s clarification was confined to the characterization of the notice and did not amount to an examination or finding on the Officer’s jurisdiction.
Direction to Issue Fresh Notice Under Section 74-A
With the above clarification, the writ appeal was disposed of by directing the appellant/Revenue Officials to follow the procedure as enunciated under Section 74-A of the GST Act and issue a fresh notice following due procedure for the financial year 2024-2025.
The connected miscellaneous petition was closed. The Court also directed that there shall be no order as to costs.
Final Decision
The Madras High Court disposed of the Revenue’s writ appeal with a clarification regarding the characterization of the Section 74 notice and directed the Revenue Officials to issue a fresh notice under Section 74-A, following the prescribed procedure for the financial year 2024-2025.
The Court did not examine the jurisdiction aspect of the Officer who had issued the original notice. The connected miscellaneous petition was closed and there was no order as to costs.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The Writ Appeal had been filed by the Revenue Officials /respondents in W.P.(MD)No.2625 of 2026 aggrieved by the order of the learned Single Judge, dated 03.02.2026.
2. The said writ petition had been filed by the assessee challenging an order dated 24.11.2025 relating to the financial year 2024 -25 /assessment year 2025-26 for which the revenue had issued a show cause notice under Section 74 of the Goods and Service Tax Act. Thereafter, the impugned assessment order had also been passed.
3. The main grievance raised in the writ petition was that provisions under Sections 73 & 74 of the GST Act stood repealed on and from the financial year 2024-25 and section 74 -A had been introduced, therefore it had been contented that any notice should have been issued only under Section 74 -A and not under the redundant provision, Section 74.
4. As a fact, Sections 73 and 74 have been wiped out away from the statute book on and from the financial year 2024 – 25 and only Section 74-A had been introduced. The learned Single Judge on that ground has therefore directed that fresh notice to be issued under Section 74-A and the procedure thereof to be followed. However, he had opined that the notice issued under Section 74 had been issued “without any jurisdiction”. In our constrained opinion, this may not be the proper position. The notice had been issued under a wrong provision of law which has to be corrected. We have not examined the jurisdiction aspect of the Officer who issued the notice.
5. With that clarification, this writ appeal stands disposed of by directing the appellant /Revenue Officials to follow the procedure as enunciated under Section 74-A of the GST Act and issue fresh notice following due procedure for the financial year 2024 – 2025. Consequently, connected miscellaneous petition is closed. There shall be no order as to costs.
