Period of limitation for passing order begins from day next to last day of extended period for filing annual return – Madras High Court {Vairam Agencies Vodafone V/s State Tax Officer, Pudukkottai – (2025) 33 Centax 165 (Mad.)}
Facts
- Proprietor of petitioner’s concern died on 02.09.2017.
- Despite death, inward supplies from Vodafone continued up to 31.03.2018, attracting GST liability.
- Department raised demand under Section 74 of GST Act.
- Petitioner challenged the order mainly on:
- Limitation – No annual return filed, but the due date was extended up to 05.02.2020; hence, under Sec. 74(10), order ought to have been passed by 04.02.2025.
- Wrong person – Demand was fastened on a deceased person.
Issue:
Whether the order passed under Section 74(10) of the GST Act on 05.02.2025 was barred by limitation, considering that the extended due date for filing annual return was 05.02.2020, and whether fastening tax liability on a deceased proprietor was valid.
Held
- By applying Sec. 9 of the General Clauses Act, 1897, limitation starts from the day after the extended due date.
- Therefore, the last date for passing order was 05.02.2025.
- Since the impugned order was passed on 05.02.2025, it was within limitation.
- However, considering that liability may shift under Sec. 93 (liability of legal heirs), the Court granted liberty to the petitioner to file an appeal u/s 107 within 30 days of receipt of the order.
