GST Notification issued u/s 168A and Related G.O.(M) is Valid: Madras HC Dismisses Petition [Read Order]

The Madurai Bench of the Madras High Court upheld the validity of a GST ( Goods and Services Tax ) notification issued under Section 168A of the Central GST Act and a corresponding Government Order (Memorandum) issued, dismissing a writ petition.

The petitioner had challenged Notification No.56/2023-Central Tax dated 28.12.2023 and G.O.(Ms) No.1 dated 02.01.2024, along with the consequential assessment order dated 26.04.2024 for the tax period 2018-19.

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The petitioner, Tvl.N.V.R. Sons contended that the impugned notifications were arbitrary, without jurisdiction, and contrary to the purpose of Section 168A, which was introduced as a temporary measure in response to the COVID-19 pandemic.

It was argued that these extensions, purportedly issued under the guise of pandemic-related hardship, were excessive and misused, especially as they came after the peak of the pandemic and adequate time had already been provided under previous extensions.

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The petitioner further claimed that the assessment order was passed without a proper inquiry and in violation of natural justice, as relevant documents such as GSTR-1, GSTR-2A, and GSTR-9 returns were allegedly not considered by the assessing authority.

On the other hand, the State defended the validity of the notifications, arguing that they were lawfully issued under Section 168A of both the CGST and TNGST Acts following GST Council recommendations.

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The State submitted that the time limits for issuing assessment orders under Section 73 had been duly extended, allowing the recovery of taxes for FY 2018-19 until 30th April 2024 and for FY 2019-20 until 31st August 2024.

“Upon considering the submissions made by the learned counsel for the petitioner and the learned Government Advocate for the respondents 3 to 5 and having regard to the materials on record, this Court is of the view that the impugned notifications issued under Notification No.56/2023-Central Tax, dated 28.12.2023 and G.O.(Ms)No.1, dated 02.01.2024, as well as the assessment order dated 26.04.2024, are valid and issued in accordance with the provisions of the CGST Act, TNGST Act and the constitutional framework”, observed  Justice Vivek Kumar Singh.

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It was also held by the court that the issuance of the notifications was in line with the powers conferred under the respective GST enactments. It observed that the authorities had acted within their jurisdiction and that the notifications were neither arbitrary nor in violation of the petitioner’s fundamental rights under Articles 14 and 19(1)(g) of the Constitution.

Accordingly, the bench dismissed the writ petition and upheld the validity of the notifications and the assessment order.

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To Read the full text of the Order CLICK HERE

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