Facts of the Case:
In this case, the petitioner challenged the assessment order on the ground that it was passed under Section 74 of the GST Act for the financial year 2025–2026. The petitioner contended that Sections 73 and 74 of the GST Act stood omitted with effect from 01.04.2024 and, for financial years 2024–2025 onwards, only Section 74A would apply. It was further submitted that although the show cause notice was issued under Section 74, the latter part of the notice referred to Section 74A(5), demonstrating uncertainty and non-application of mind by the respondent. The petitioner argued that the proceedings were initiated without jurisdiction and sought setting aside of the impugned order.
Issue:
Whether an assessment order passed under Section 74 of the GST Act for the financial year 2025–2026 is without jurisdiction, in view of omission of Sections 73 and 74 with effect from 01.04.2024.
Held that:
The Court held that since Sections 73 and 74 stood omitted with effect from 01.04.2024, only Section 74A would apply for financial years 2024–2025 onwards. Therefore, issuance of the show cause notice dated 04.07.2025 and the consequent assessment order dated 19.08.2025 under Section 74 were without jurisdiction. The Court further observed that the show cause notice, while invoking Section 74, also referred to Section 74A(5), indicating clear non-application of mind and causing confusion and prejudice to the petitioner in responding to the notice.
Accordingly, the impugned order dated 19.08.2025 was set aside and the matter was remanded to the respondent for fresh consideration. To avoid further delay, the Court directed the petitioner to treat the impugned assessment order as a notice issued under Section 74A and file a reply within four weeks. The respondent was directed to grant a clear 14 days’ notice for personal hearing and thereafter pass fresh orders on merits in accordance with law.
Case name: Tvl. RB Communication Represented by its Proprietor M. Ramachandran Versus The State Tax Officer, Virudhunagar. dated 11.02.2026
