A show cause notice (SCN) under section 73(1) of the CGST Act, 2017 is being proposed to be issued to Evergreen Farm Technologies Pvt. Ltd on 31.07.2023 on account of short payment of tax during the period between 1.7.20

The Show Cause Notice under section 73(1) of the CGST Act, 2017 can be issued as per section 73(2) at least 3 months prior to the time limit specified for issuance of order under section 73(10) of the CGST Act, 2017. The adjudication order under section 73(1) of the CGST Act, 2017 has to be issued within 3 years from the due date for furnishing of annual return for the financial year to which the short paid/ not paid tax relates to. The due date under section 44 of the CGST Act, 2017 for furnishing annual return for a financial year is 31st day of December following the end of such financial year. SCN under section 73(1) of the CGST Act, 2017 thus can be issued within 2 years and 9 months from the due date for furnishing of the annual return for the financial year to which the short-paid/not paid tax is related. The SCN has been issued for the period between 1.7.2019 to 31.12.2019 which falls in the financial year (FY) 2019-20. Due date for furnishing the annual return for the FY 2019-20 is 31.12.2020 and 3 years period from due date of filing annual return expires on 31.12.2023. Thus, SCN under section 73(1) ought to have been issued latest by 30.09.2023. Since in the given case, the notice has been issued on 31.07.2023 notice is not time barred and has been issued correctly. The contention of Evergreen Farm Technologies Pvt. Ltd. is not valid in law.