[BREAKING] Issuance of GST Notice Limitation Extension Notification after Statutory Time Limit: Patna HC stays GST Order

A Division Bench of the Patna High Court has stayed an order of the Goods and Services Tax ( GST ) authorities, issued based on show cause notice that invoked the extended period of limitation as per the notification that dated 31.03.2023 [Notification No. 9/2023] - Central Tax.

“The argument raised against Annexure P3 order is of limitation. The assessment is carried out for the year 2017-18 while limitation is of 3 years as provided under Section 73(10)”, the bench observed.

“A notification has been issued extending the period for 5 years which is dated 31.03.2023 by which time the limitation has already expired”, the bench further noted.

It was thus held that, “In such circumstances, there shall be a stay of Annexure P3 order, till the next hearing date”, granting a much deserved interim relief to the petitioner.

The Bench of Chief Justice K Vinod Chandran and Justice Harish Kumar added that, “The matter shall be posted along with CWJC No. 4180 of 2024.”

The matter is now listed for hearing on 9th April 2024.

The issue pertains to the issuance of Goods and Services Tax ( GST ) Demand Orders under Section 73(9) of Central Goods and Services Tax ( CGST ) Act as per limitation periods under Section 73(10) extended in line with the following Notifications —

Notification No. 35/2020 – Central Tax [3rd April, 2020],

Notification No. 14/2021 – Central Tax [1st May, 2021],

Notification No. 13/2022 – Central Tax [5th July. 2022],

Notification No. 09/2023 – Central Tax [31st March, 2023] and

Notification No. 56/2023 – Central Tax [28th December, 2023].

Read Detailed Article Her: Can extended limitations override Statutory Time Limits? Uncovering the Potential Unconstitutionality of Notification Extending Deadline for GST Orders u/s 73

At present, there is no such ground attributable as force majeure which affects the implementation of any of the provisions of the act (GST Act) throughout India. Thus the invocation of Section 168A is an act of grave misuse of legislative provisions. Further, neither the press release nor the recent meeting minutes of the GST Council show any hint of discussion or recommendation regarding the extension of the time limit.

As per the Provisions of Section 168A, the Government may, on the recommendations of the Council, by notification, extend the time limits. However, as noted, the Press Releases of GST Council Meetings do not give any hint of any such recommendation whatsoever.

To Read the full text of the Order CLICK HERE

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