Supreme Court to examine whether the six-month time limit for issuance of show cause notice under Section 74(2) of the CGST Act is mandatory or directory

Last updated: 01 August 2026

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The Supreme Court is examining whether the six-month time limit for issuing a show cause notice under Section 74(2) of the CGST Act is a mandatory requirement or merely a procedural guideline. The Telangana High Court had previously ruled it was directory, but the Supreme Court has now stayed this decision and related orders, pending a final determination. This case will clarify whether the statutory timeline for initiating adjudication proceedings impacts the jurisdiction of tax authorities.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme Court in M/s. Bengal Cold Rollers Private Limited v. The Assistant Commissioner (ST), Basheerbagh-Nampally-1 Circle & Ors. [Writ Petition (Civil) No. 836 of 2026 with SLP (C) No. 23718 of 2026 dated July 21, 2026] issued notice in the challenge laid to the judgment of the Hon'ble Telangana High Court which had held that the time limit prescribed under Section 74(2) of the Central Goods and Services Tax Act, 2017 ( "the CGST Act" ) for issuance of a show cause notice is merely directory and not mandatory, and stayed the operation of the impugned judgment dated June 25, 2026 as well as the Orders-in-Original dated April 22, 2026 relating to Financial Years 2021-2022, 2022-2023 and 2023-2024 till the next date of hearing, thereby leaving open for authoritative determination of the question as to whether the statutory timeline for initiation of adjudication proceedings goes to the root of jurisdiction.

Citation :
Writ Petition (Civil) No. 836 of 2026 with SLP (C) No. 23718 of 2026 dated July 21, 2026

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Attached File : 671907_6053_sc_hc_bengal_cold_rollers_private_limited.pdf

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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