Chemplast Sanmar Ltd. v. Assistant Commissioner (ST)
In favour of the revenue
The ruling in brief
Chemplast Sanmar Ltd. (Madras High Court, WP 23220 and 23540 of 2024, 8 June 2026, C. Saravanan, J.) challenged parallel audit-based and scrutiny-based show cause notices for identical period after NCLT-approved merger transferring unutilized ITC and liabilities (Sections 44, 65, 73, 74, 75, 168A). Petitioner argued duplication and limitation defects. Court held separate notices permissible because audit and scrutiny originate from distinct statutory processes; facts indicated suppression warranting Section 74 extended limitation when properly pleaded. Writ premature—disputed questions require adjudication on merits rather than Article 226 shortcut. Petitions dismissed. Outcome: in favour of the revenue. Merger transitions under Section 44 annual returns remain sensitive trigger for multi-track proceedings. Informational summary. This editorial note is for Chartered Universe professional research and is not legal advice.
For information only — not legal advice. Read the full judgment and applicable law before relying on this summary.
Provisions considered
- CGST S.74 — Determination of tax not paid or short paid involving fraud or suppression.
- CGST S.44 — Annual return and reconciliation statement.
- CGST S.65 — Section 65 of the Central Goods and Services Tax Act, 2017.
- CGST S.73 — Determination of tax not paid or short paid (non-fraud cases).
- CGST S.75 — General provisions relating to determination of tax.
- CGST S.168A — Power of Government to extend time limits in special circumstances.
Source documents
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