Delhi High Court Clarifies Limitation Period Rules for Goods and Services Tax Demands
The Delhi High Court has ruled that the limitation period under Section 74 depends on substantive notices and orders rather than later DRC-01 or DRC-07 dates. This judgment clarifies how timelines are computed for tax disputes. Finance professionals must review their case files to ensure compliance with this ruling.
Effective Not specified in the update
For professionals: Advise clients to audit all pending litigation and notice files to align with the judicial position that the limitation period under Section 74 is governed by substantive notices and orders rather than Form DRC-01 or Form DRC-07 dates. · Examine whether current demands comply with strict statutory timelines rather than relying merely on subsequent procedural intimations. · Review tax proceedings to ensure statutory timeframes are calculated correctly based on the true legal basis for time limits.
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