Guwahati High Court quashes NN 56/2023-CT dated 28.12.2023 extending time limit for passing of Order u/s 73(10) for the year 2018-19.

In the case of?M/s. Barkataki Print and Media Services and Dhrubajyoti Barkotoky vs Union of India and 4 Ors, Case No. WP(C)/3585/2024,?the Guwahati High Court analysed and determined the vires of Notification No. 56/2023-CT dated 28.12.2023 as per the provisions of Section 168A of the CGST Act, 2017. Following aspects were discussed:

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Section 168A of the CGST Act, 2017 empowers the Government to extend the prescribed time limits, on recommendation of the Council, in respect of acts which could not be completed or complied with due to force majeure.?

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Thus, two conditions are essential for exercising power under Section 168A:

·??????? There has to be a recommendation from the Council

·??????? There has to be a situation of force majeure.

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Since Notification No. 56/2023-CT dated 28.12.2023 was issued by exercising the power under Section 168A of the CGST Act, 2017, therefore, the above two conditions are required to be fulfilled for validity of the said notification.

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The Hon’ble High Court observed that Notification No. 56/2023-CT dated 28.12.2023 was issued without any recommendation from the GST Council. Since, on the face of such notification, it is mentioned that ‘on the recommendation of the Council’, hence, such notification is a colorable legislation.

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The High Court further observed that there was no condition of force majeure at the time of issuance of this notification since 49th Council meeting had clearly recorded that there shall be no further extension beyond three months in the interest of the taxpayers.

In view of above observations, the Hon’ble High Court of Guwahati held that the Notification No. 56/2023-CT dated 28.12.2023 is ultra vires and not legally sustainable. Hence, the same was quashed.

?Our Comments:

This is a favourable judgment for all the taxpayers who can now challenge the Notices and Orders which are issued within the extended time period as granted by Notification No. 56/2023-CT dated 28.12.2023. All such notices and Orders are liable to be quashed without going into the merits of the case being time barred.

Notably, earlier, the Kerala High Court's decision in the case of M/s. Faizal Traders Pvt. Ltd. Versus Deputy Commissioner, Central Tax and Central Excise, WP(C) NO. 24810 Of 2023?reported at?2024-TIOL-736-HC-KERALA-GST, upheld the validity of extending deadlines for issuing tax assessment orders under Section 168A of the CGST Act, 2017 due to the COVID-19 pandemic. The court recognized COVID-19 as a force majeure event, justifying the extensions issued through Notifications 13/2022 and 09/2023, which were backed by the GST Council's recommendations