GST Notifications Extending Limitation u/s 168A Stand Vitiated and Illegal: Madras HC Sets Aside Assessment Order [Read Order]

In a recent judgment, the Madras High Court (Madurai Bench) held that GST notifications that extend the limitation under Section 168A of the CentralGoods and Services (CGST) Act are invalid and illegal, and it quashed an assessment order passed based on those notifications.

The petitioner, Abdul Kader M, a registered GST dealer, challenged the assessment order for the assessment year 2019-2020 which passed relying on Notification No. 09/2023 and Notification No. 56/2023.

The petitioner’s advocate argued that these notifications go beyond Section 168A of CGST Act and cannot apply back in time to change or limit the time period. They also say the assessment order passed without giving him chance for personal hearing which violated natural justice principles.

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The counsel further argued that assessment order made in name of his father who later pass away, and the petitioner (as legal heir) ready to give reply and documents if opportunity given.

The respondents’ counsel argued that issue about validity of Notification Nos. 09/2023 and 56/2023 already been decided by Madras High Court in earlier writ petitions on 12 June 2025.

They explained that while the notifications had been held illegal, the initiation of proceedings could still be sustained in view of the extension of limitation granted by the Supreme Court during the COVID-19 period in Suo Motu W.P.(C) No. 3 of 2020. The respondents also did not dispute the petitioner’s grievance regarding lack of personal hearing.

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Justice Krishnan Ramasamy observes that validity of these notifications no longer open question, as court already said Notification Nos. 09/2023 and 56/2023 are invalid and illegal. The court explained these notifications reduce time limit against Supreme Court’s orders under Article 142 and based on wrong understanding of law.

At the same time, the court observed that starting proceedings under Section 168A can be treated as valid because of Supreme Court’s extension during the pandemic. The court pointed out that assessment order of 30 July 2024 passed without giving petitioner personal hearing, which was a clear violation of natural justice.

Because of these, the High Court quashed the assessment order and sent back the matter to assessing officer for fresh look. The writ petition was disposed of without any order on costs.

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