Baskar Selvakumar (Prop: Vettri Vinayagar Electrical Works) Vs Assistant Commissioner, Central Tax
Date: February 2, 2026
Subject Matter
Assessment Order Under Omitted Section 74 for Post-2024 Period Set Aside
Summary
The High Court has set aside an assessment order dated 24.11.2025 and the preceding show cause notice for the financial year 2024-2025. The order was quashed because it was issued under Section 74 of the GST Act, which stood omitted with effect from 01.04.2024. The Court ruled that only Section 74A is applicable for proceedings from FY 2024-2025 onwards, rendering the impugned action without jurisdiction. The matter was remanded for fresh consideration under the correct legal provisions.
Summary of Facts and Dispute:
- Impugned Action: The respondent issued a show cause notice under Section 74 of the GST Act, followed by an assessment order dated 28.10.2025, and subsequently an impugned order dated 24.11.2025, pertaining to the financial year 2024-2025.
- Petitioner's Argument: The petitioner contended that Sections 73 and 74 of the GST Act were omitted from 01.04.2024, and only Section 74A of the GST Act applies for financial years 2024-2025 onwards. Therefore, the proceedings and assessment order issued under the omitted Section 74 were without jurisdiction.
- Core Question of Law: Whether assessment proceedings and orders initiated under Section 74 of the GST Act are valid for the financial year 2024-2025 onwards, given that Sections 73 and 74 were omitted and Section 74A became applicable from 01.04.2024.
Key Legal Issues & Findings:
Applicability of GST Sections for Financial Year 2024-2025 Onwards
The Court considered the submissions of both parties regarding the relevant statutory provisions and their effective dates.
- Omission of Sections 73 & 74: The Court noted that Sections 73 and 74 of the GST Act stood omitted with effect from April 1, 2024.
- Applicability of Section 74A: For financial years 2024-2025 onwards, only the provisions of Section 74A of the GST Act are applicable for assessment proceedings.
- Jurisdiction for Assessment: Consequently, any show cause notice or assessment order issued under the omitted Section 74 for the period pertaining to financial year 2024-2025 is without jurisdiction.
Ruling:
- Outcome: The impugned order dated 24.11.2025 is set aside.
- Directions: The matter is remanded to the respondent for fresh consideration. The petitioner is directed to treat the impugned order dated 24.11.2025 as a notice issued under Section 74A of the GST Act and file their reply/objection along with required documents within four weeks. The respondent shall then issue a 14-day clear notice for a personal hearing and pass appropriate orders on merits and in accordance with law, expeditiously after hearing the petitioner.
- Liberty: The respondent is granted liberty to proceed with assessment and pass appropriate orders on merits under Section 74A of the GST Act, after following due process and considering the petitioner's reply.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This writ petition has been filed challenging impugned order dated 24.11.2025 passed by the respondent.
2. Mr. R.Gowri Shankar, learned counsel, takes notice on behalf of the respondents.
3. By consent of the parties, the main writ petition is taken up for disposal at the admission stage itself.
4. The learned counsel for the petitioner would submit that the provisions of Sections 73 & 74 of the GST Act stood omitted with effect from 01.04.2024 and only the provisions of Section 74A of the GST Act will apply for the financial years 2024-2025 onwards. However, without considering the same, in the present case, which is pertaining to the financial year 2024-2025, the respondent had issued the show cause notice under Section 74 of the GST Act and subsequently, passed the impugned assessment order without any jurisdiction. Hence, he requests this Court to set aside the impugned order passed by the respondent.
5. In reply, the learned Additional Government Pleader had fairly admitted the submissions made by the petitioner and submitted that the proceedings were wrongly invoked under Section 74 instead of Section 74A. Hence, he requests this Court to set aside the order and remand back this matter to the 1st
6. Heard the learned counsel for the petitioner and the learned counsel for the respondents and also perused the entire materials available on record.
7. In this case, as rightly contended by the petitioner, the provisions of Sections 73 & 74 of the GST Act stood omitted with effect from 01.04.2024 and only the provisions of Section 74A of the GST Act will apply from the financial years 2024-2025 onwards. Hence, it is clear that the show cause notice and assessment order dated 28.10.2025 came to be passed without any jurisdiction. Thereafter, the said aspect was rectified vide the impugned order dated 24.11.2025 without providing any opportunity to the petitioner. In such view of the matter, this Court is inclined to set aside the impugned order dated 24.11.2025 passed by the 1st respondent. Further, to avoid any further delay and inconvenience to both the parties, this Court is inclined to direct the petitioner to treat the impugned assessment order as a notice issued under Section 74A of the GST Act and file reply to the same.
8. Accordingly, this Court passes the following order:-
(i) The impugned order dated 24.11.2025 is set aside and the matter is remanded to the respondent for fresh consideration
(ii) The petitioner is directed to treat the impugned order dated 24.11.2025 as a notice issued under Section 74A and file their reply/objection along with the required documents, if any, within a period of four weeks from the date of receipt of a copy of this order.
(iii) On filing of such reply/objection by the petitioner, the respondent shall consider the same and issue a 14 days clear notice, by fixing the date of personal hearing, to the petitioner and thereafter, pass appropriate orders on merits and in accordance with law, after hearing the petitioner, as expeditiously as possible.
9. With the above directions, this writ petition is disposed of. No costs. Consequently, the connected miscellaneous petition is also closed.