The Gujarat High Court has held that an extension once made to the limitation period to issue an order under section 73 of Goods and Service Tax (GST) cannot be further extended.
SRSS Agro Pvt Ltd, the petitioner submitted that the notification dated 31.03.2023 extending the time limit specified under Section 73 of the Act by the powers under Section 168A of the Act is unjustified as the extension has to be for special circumstances. Having once extended the period by notification dated 05.07.2022, no subsequent extension could be made.
The Notification No. 9/2023-CT dated 31.03.2023, under which the time limit specified u/s 73(10) for issuance of order u/s 73(9) of the CGST Act, 2017 in respect of FY 2017-18 was extended up to 31.12.2023. Vide this notification, the time limit for issuance of orders for FY 2018-19 & FY 2019-20 was also extended.
Relying upon the above notification, several show cause notices have been issued all over the country, assuming that given the extended time limit, SCNs for FY 2017-18 can be issued up to 30.09.2023, in terms of the provisions of Section 73(2) of the CGST Act.
Essentially, the notifications are of the Union of India and by such power the respondent, the State has issued a show-cause notice dated 29.09.2023.
Since the notice issued to the respondents was returnable on 30.11.2023, the petitioner asked for time to reply to the show-cause notice. A division bench of Justice Biren Vaishnav and Justice Mauna M Bhatt granted time to file a reply to the show cause notice.
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