No Extension to Statutory Limitation for Issuing SCN under CGST Act: Gujarat HC Orders No Final Order Shall be Passed on SCN [Read Order]

The Gujarat High Court has held that no extension to statutory limitation for issuing Show Cause Notice (SCN) under the Central Goods and Service Tax (CGST) Act, 2017 and ordered no final order shall be passed on SCN.

M/S Gajanand Multishop, the petitioner filed the petition challenging the notification extending the period of the show cause notices.It was submitted that there is no ground mentioned in the impugned notification no.9 of 2023 dated 31.03.2023 extending the period for issuance of the show-cause-notice under Sub-section 10 of Section of the Central Goods and Service Tax Act, 2017 (“the Act”) while exercising the powers under the Central Board of Indirect Taxes and Customs under Section 168A of the Act.

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It was submitted that after the year 2022, there was no COVID-19 pandemic in existence and accordingly the provisions of Section 168A of the Act would not be applicable for extension of time. He also invited the attention of the Court to the explanation of section 168A of the Act and submitted that none of the eventualities mentioned therein existed when the impugned notification was issued by the Central Board of Indirect Taxes and Customs. It was therefore submitted that such an extension is not sustainable in law and is contrary to the provision of Section 168A of the Act.

Considering the above submissions, the division bench comprising Justice Bhargav D Karia and Justice Niral R Mehta held that issued Notice returnable on 8th February 2024. “By way of ad-interim relief, no final order shall be passed by the respondent authority under the show-cause-notice issued during the period extended by the impugned notification without permission of the Court till the next date of hearing.”, the bench concluded.

To Read the full text of the Order CLICK HERE

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