Order dated: 28 July 2025
Parties: Tvl. Vairam Agencies Vodafone Cell v. State Tax Officer, Pudukkottai-II Assessment Circle

Facts -

• The petitioner challenged an assessment order passed under Section 74 of the CGST/TNGST Act, 2017, for AY 2017–18. The tax demand arose from continued purchases from Vodafone amounting to ₹3.45 crore, despite the death of the proprietor (petitioner’s father) on 02.09.2017.
• The department presumed outward supply based on inward supply using Rule 30 of CGST Rules and imposed tax. The petitioner argued that the business had been instructed to close and any transactions were unauthorized by the family.

Issue -

• Whether the assessment order was sustainable when the tax demand was raised in the name of a deceased individual and challenged after a gap?

Order -

• The Single bench of the Hon’ble High court held that the contention that the impugned order is barred by limitation under Section 74(10) of the GST enactments cannot be accepted in the light of Section 9 of the General Clauses Act, 1897.
• The period of limitation begins from 06.02.2020 and therefore, the last date for passing the order would be 05.02.2025. In the present case, the order has been passed on 05.02.2025 and thus, the impugned order has been passed within the period of limitation.
• However, considering the peculiar facts of the case, particularly, the fact that the petitioner may be liable for the tax demand under Section 93 of the respective GST enactments, the petitioner is granted liberty to file a statutory appeal under Section 107 of the Act, within a period of 30 days from the date of receipt of a copy of this order.