The Supreme Court has taken up an important issue relating to the interpretation of Section 73(10) of the CGST Act, namely whether the statutory requirement of passing an assessment order within “three months” should be understood as three calendar months or as a fixed period of 90 days.
While hearing a challenge arising from proceedings involving GST assessment timelines, the bench of Justice K.V. Viswanathan and Justice Vijay Bishnoi issued notice in the matter and directed parties to maintain status quo.
The case arose from an SLP filed by the State of Telangana against the judgment dated April 23, 2025 passed by the High Court for the State of Telangana at Hyderabad in Writ Petition No.12070 of 2025. The matter came up before a Bench comprising Justice K.V. Viswanathan and Justice Vijay Bishnoi on May 22, 2026.
During the hearing, the counsel appearing for the State argued that the High Court’s order suffered from an error because the assessment had, in fact, been completed within the relevant period. According to the submissions made before the Supreme Court, the show cause notice had been issued on November 30, 2024, while the assessment order itself had been passed on February 28, 2025. The petitioners argued that these timelines demonstrated compliance with the applicable procedural requirements.
After hearing the submissions, the Supreme Court condoned the delay in filing and refiling of the petition and proceeded to issue notice in the matter. The Court directed that the matter be listed again on August 10, 2026.
Significantly, pending further consideration of the dispute, the Court directed that “status quo” shall be maintained by the parties. Such an interim direction generally seeks to preserve the existing legal and factual position so that neither side gains an advantage while the Court examines the substantive issues raised in the appeal.
The dispute could become important from a tax administration perspective because it touches upon the recurring issue of timelines governing assessment proceedings and the consequences of alleged procedural lapses. Questions relating to whether assessment orders are passed within statutory periods frequently arise in indirect tax litigation and often determine the validity of the entire proceedings.
The Supreme Court has not expressed any view on the merits of the dispute at this stage. With notice now issued and interim protection granted through a status quo order, the matter will proceed for further hearing in August 2026.
Case Details
Case Title: THE STATE OF TELANGANA & ANR. Versus LSG SKY CHEFS (INDIA) PRIVATE LIMITED
Citation: JURISHOUR-1352-SC-2026
Case No.: SPECIAL LEAVE PETITION (CIVIL) Diary No(s). 72539/2025
Date: 22/05/2026
