Time Extension by Supreme Court During COVID Meant for Litigants, Not Authorities: Andhra Pradesh HC quashes GST Revisional Order [Read Order]
The Supreme Court’s extension orders were intended to protect litigants’ rights and not to enlarge the time available to authorities to exercise their statutory powers.
GST - revisional - order - Taxscan
GST - revisional - order - Taxscan
The Andhra Pradesh High Court has quashed a revisional order passed by the GST ( Goods and Services Tax ) Department beyond the statutory time limit, holding that the extension of limitation granted by the Supreme Court during the COVID-19 pandemic was meant to benefit litigants approaching judicial or quasi-judicial bodies, and not for revenue authorities exercising statutory powers.
The petitioner, Gupthas Constructions Company, engaged in construction and sale of apartments, had been subjected to an assessment order dated 29.11.2021 for the period 2017 - 18 to 2020-21.
Subsequently, the Joint Commissioner (ST), Nellore Division, passed a revisional order on 15.02.2025 under Section 74 of the GST Act, confirming tax demands of ₹75.80 lakh each towards CGST and SGST, along with interest and penalty.
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The petitioner, challenging this revisional order argued that under Section 108(2) of the Andhra Pradesh GST Act, the limitation for passing such an order is three years from the date of the original assessment. Since the assessment order was passed on 29.11.2021, the limitation expired on 29.11.2024. However, the revisional order was issued on 15.02.2025, rendering it time-barred.
The State countered by relying on the Supreme Court’s suo motu orders in In Re: Cognizance for Extension of Limitation, which extended limitation periods in judicial and quasi-judicial proceedings during the pandemic. It was argued that the same should apply to departmental proceedings as well.
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The Division Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar referring to the Supreme Court ruling in the case of S. Kasi vs. State through the Inspector of Police, Samaynallur Police Station, Madurai District, the Judgment of the High Court at Calcutta, in the case of Gobindo Das & Ors., vs Union of India and Ors and the Judgment of the High Court of Delhi, in the case of Vikas WSP Ltd., vs. Directorate Enforcement clarified that the Supreme Court’s extension orders were intended to protect litigants’ rights and not to enlarge the time available to authorities to exercise their statutory powers.
Accordingly, the Court held the revisional order dated 15.02.2025 as barred by limitation and set it aside. The writ petition was allowed, with no order as to costs, and all pending miscellaneous petitions were closed.
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