The ruling in brief
Where SCN for ITC mismatch and short payment for periods 2018-2019, 2019- 2020 and 2020-2021 was issued on 13.06.2025 after expiry of limitation, statutory outer limit including COVID exclusion ended on 28.02.2025, and audit communications in 2024 did not extend statutory deadlines, notice was time-barred and invocation of omitted explanation to extend limitation was not tenable.
Where department initiated demand proceedings alleging ITC taken without documents and suppression but show cause notice contained only bare assertions without foundational facts required for extended limitation, such notice and resultant order were invalid, however liberty was granted to initiate fresh proceedings under section 74 with necessary foundational facts before prescribed date
Provisions considered
Section 73, read with section 44 of Central Goods and Services Tax Act, 2017 - Rule 80 of Central Goods and Services Tax Rules, 2017; Section 74 of Central Goods and Services Tax Act, 2017
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