2026-VIL-1057-GAU
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SGST High Court Cases

GST - Interpretation of Section 73(2) of CGST Act, 2017 - Determination of timely issuance of Show Cause Notice - Computation of prescribed period of three months - Petitioner issued notice under Section 73(1) proposing demand for wrongful availment of Input Tax Credit; terminal date for issuing order under Section 73(10) was 28.02.2025 - Petitioner contended that notice should have been issued at least three months prior to 28.02.2025 i.e. by 28.11.2024 and notice issued on 29.11.2024 was beyond prescribed time - Whether the expression three months in Section 73(2) requires calculation using corresponding date principle with notice date falling exactly three calendar months before terminal date or whether the requirement is satisfied when three calendar months are available between issuance of notice and terminal date - HELD - The expression three months in Section 73(2) of CGST Act means calendar months and not a period of days. Where a statutory period is prescribed from a specified date, the date from which period commences is ordinarily excluded in accordance with Section 9 of General Clauses Act 1897. Section 73(2) prescribes the minimum interval that must be available between initiation of adjudicatory proceeding by issuance of notice under Section 73(1) and outer limit fixed for culmination under Section 73(10) and not an independent period expiring on a corresponding date calculated backward from terminal date - Application of rigid corresponding date principle whereby notice issued on 29.11.2024 would be deemed one day beyond limitation merely because calculated corresponding date was 28.11.2024 introduces unjustified rigidity into the statutory provision - Section 73(2) does not expressly provide that corresponding date arrived at by counting backward is the cut-off for issuance of notice; if that was the legislative intention language clearly fixing such date would have been employed. The statutory requirement under Section 73(2) is satisfied when three full calendar months are available after excluding date of issuance of notice and before expiry of terminal date - In the present case excluding date of issuance 29.11.2024, the intervening period comprises remainder of November and full calendar months of December, January and February ending on 28.02.2025, thereby providing the required minimum adjudicatory interval - The notice dated 29.11.2024 was validly issued within the time prescribed under Section 73(2) of CGST Act – The writ appeal is dismissed
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