The Gauhati High Court in a recent matter before it held that any Demand Order passed beyond the permissible limitation period under the Goods and Services Tax (GST) provisions is unsustainable in law.
The Gauhati High Court passed the judgment while adjudging a Writ Petition filed by Rinkumoni Bordoloi against a GST Demand Order passed by the Revenue Department under Section Section 73(9) of the Central Goods and Services Tax Act, 2017 (CGST Act) and the Assam Goods and Services Tax Act, 2017 (Assam GST Act).
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The Order-in-Original, passed on 04.05.2024 pertained to the Petitioner’s GST Returns for the Financial Year 2018-2019, more than three years after the disputed Returns filed by the Petitioner on 30.04.2021.
The Counsel appearing for the Petitioner, RS Mishra contended before the Gauhati High Court that the Order-in-original passed by the Revenue Department dated 04.05.2024 is beyond the permissible limitation of three years to pass a Demand Order on a filed Return as permitted by Section 73(10) of both, the CGST Act and Assam GST Act.
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Section 73(10) of CGST Act and Assam GST, being pari materia provides that: “The proper officer shall issue the order under sub-section (9) within three years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within three years from the date of erroneous refund”
The Bench of the Gauhati High Court solely presided over by Justice Devashis Baruah after taking into account the submissions made by the Counsels for either parties observed that, there is no Notification passed under Section 168A of neither the CGST Act or the Assam GST Act ‘permitting the extension of time limit under special circumstances’.
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In light of the observations made, the Gauhati High Court proceeded to quash the impugned Demand Order passed by the Revenue Department citing the lack of jurisdiction and statutory assent exercisable by the Revenue Department to file a delayed Demand Order under Section 73(9) of the the CGST Act and Assam GST Act.
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