Supreme Court sets aside SCN dated 13.06.2025 as time-barred under Section 73

The core issue is whether the notice can be sustained under the extended five-year limitation period for fraud/suppression, given that the notice lacked specific foundational facts and was issued after the standard three-year limitation period had expired.

Who it concerns: Appellant: M/s Tata Steel Limited; Respondents: Union of India (through Secretary, Ministry of Finance and others); Bench: Justice K. Vinod Chandran and Justice B. Pardiwala.

What the court decided

• The Court set aside the Show Cause Notice (SCN) dated 13.06.2025 and the consequential Order-in-Original dated 26.12.2025.
• The Court held that the SCN could not be sustained under Section 74 because it contained only general allegations of suppression without stating the foundational facts required to justify the extended limitation period.
• The Court allowed the Department liberty to initiate fresh proceedings under Section 74, provided such proceedings include foundational facts and an order is passed before 28.02.2027.

Also in the document

• The Court noted that the standard three-year limitation period for the relevant financial years expired on 28.02.2025, making the SCN dated 13.06.2025 time-barred under Section 73.
• The Court rejected the Department's reliance on Explanation 2 to Section 74, noting it was omitted with effect from 01.11.2024.
• The Court emphasized that the Assessing Officer must be satisfied that fraud, willful misrepresentation, or suppression led to the tax mismatch, rather than merely reciting such words mechanically.