Southern Steels v. Assistant Commissioner (ST)
In favour of the revenue
The ruling in brief
Southern Steels, which operated two GST registrations, challenged invocation of the extended limitation period before the Madras High Court in consolidated writ petitions decided on 8 June 2026. Department inspection had revealed circular transactions and fictitious input tax credit on non-supplies across the registrations. The assessee argued procedural defects in proceedings tied to the Erode registration. The Court, referring to sections 74 and 75 of the CGST Act and Rule 142, held that prima facie findings of fraud or collusion justified extended-period invocation for both registrations, and that procedural requirements for the Erode registration had been duly followed. It emphasised that the threshold for invoking extended limitation under the GST regime is lower than under earlier indirect tax laws. The writs were dismissed, favouring the revenue. For CA reference only; 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.75 — General provisions relating to determination of tax.
- CGST Rules R.142 — Notice and order for demand of amounts payable under the Act.
Source documents
Similar rulings
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