Extension Of Limitation Period Under Section 168A Of GST Act; Punjab And Haryana High Court Issues Notice

The Punjab and Haryana High Court has issued a notice to the government in a plea challenging the extension of the limitation period under Section 168A of the GST Act.

The bench of Justice G.S. Sandhawalia and Justice Lapita Banerji has stayed the passing of final orders in Section 73 cases for the fiscal year 2018-19. Section 73 deals with the determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful- misstatement or suppression of facts.

The petitioner relied upon the pendency of M/s Midas Agro Foods Pvt. Ltd. vs. Union of India & others, pending for 25.01.2024, along with connected cases in which the challenge is to a circular dated November 20, 2017, in which stay has been declined in a large number of cases at a subsequent point in time after noticing that the judgement of the Andhra Pradesh High Court had been stayed by the Apex Court on November 21, 2022 in SLP Diary No.30552 of 2022. Thus, the earlier stay granted on March 15, 2021, wherein it had been directed that no coercive steps would be taken, has been watered down.

The petitioner argued that the show cause notices issued on December 27, 2023, for the financial year 2018–19 are time-barred and has raised a challenge to the notifications dated March 31, 2023, and December 28, 2023, issued under Section 168A of the Central Goods and Services Tax Act, 2017, whereby the time limit for passing the order under Section 73(10) has been extended. The extension thus granted by virtue of the notifications is subject matter of challenge before the Gujarat High Court at Ahmedabad by placing reliance upon the interim order dated 21.12.2023 passed in M/s New Acid Baroda Pvt. Ltd. vs. Union of India and the interim order dated 17.11.2023 of the Allahabad High Court, wherein it has also been directed that proceedings in pursuance of the show cause notice may go on but the final order shall not be passed.

It was urged by the petitioner that the show cause notices dated December 27, 2023, now issued would be time-barred, and thus, he has distinguished the earlier set of cases wherein a stay was not granted.

The court, while issuing the notice, stated that in the meantime, proceedings may carry on but the final order may not be passed.

Counsel For Petitioner: Sandeep Goyal, Nazuk Singhal, Nitish Bansal

Case Title: M/s Garg Rice Mills & others Vs. State of Punjab & others

Case No.: CWP-1138 & 1140-2024

Click Here To Read The Order