Case Law Details
New India Acid Baroda Pvt. Ltd. Vs Union of India (Gujarat High Court)
Introduction: In a recent case, New India Acid Baroda Pvt. Ltd. filed a petition against the Union of India before the Gujarat High Court. The petitioner’s counsel, Mr. Avinash Poddar, raised concerns regarding the extension of the time period for the issuance of show-cause-notices under Sub-section 10 of Section 168A of the Central Goods and Service Tax Act, 2017 (hereinafter referred to as “the Act”). The impugned GST notification, No. 9 of 2023 dated 31.03.2023, has sparked controversy due to the absence of grounds justifying the extension, as argued by Mr. Poddar.
Legal Context: Mr. Poddar argued that Section 168A of the Act empowers the Central Board of Indirect Taxes and Customs to extend the time period for issuing show-cause-notices, but only under specific circumstances. The crux of his argument lies in the fact that, according to the counsel, the conditions outlined in Section 168A, particularly those related to the existence of a COVID-19 pandemic, were not applicable after the year 2022. The counsel pointed out that the extension, lacking justification in the absence of a pandemic, contradicts the statutory provisions.
Examination of Section 168A: To understand the crux of the matter, it is imperative to delve into the provisions of Section 168A of the Act. The said section allows the Central Board of Indirect Taxes and Customs to extend the time limit for issuing show-cause-notices under certain circumstances. Mr. Poddar contends that the conditions stipulated in the explanation to Section 168A were not met when the impugned notification was issued. This raises questions about the legality and sustainability of the extension granted.
Implications on Legal Grounds: The petitioner argues that the extension granted is not sustainable in law and is in direct contravention of Section 168A of the Act. The court, taking cognizance of these contentions, has issued a Notice returnable on 8th February, 2024. Additionally, the court, by way of ad-interim relief, has restrained the respondent authority from passing any final order pursuant to the show-cause-notices issued during the extended period without the permission of the court until the next date of hearing.
Conclusion: The case of New India Acid Baroda Pvt. Ltd. vs. Union of India brings to light the nuanced legal discussions surrounding the extension of the time period for issuing show-cause-notices under the CGST Act. The court’s upcoming decision will likely have implications on the interpretation of Section 168A and its applicability beyond the circumstances outlined in the explanation to the section. This case underscores the importance of adherence to statutory provisions and raises questions about the legality of extensions granted without meeting the specified conditions.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. Heard learned advocate Mr. Avinash Poddar for the petitioner.
2. It was submitted by the learned advocate Mr. Poddar that there is no ground mentioned in the impugned GST notification, No. 9 of 2023 dated 31.03.2023 extending the time period for issuance of the show-cause-notice under Sub-section 10 of Section of the Central Goods and Service Tax Act, 2017 (for short “the Act”) while exercising the powers under the Central Board of Indirect Taxes and Customs under Section 168A of the Act. It was submitted that after the year 2022 there was no COVID 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 to section 168A of the Act and submitted that none of the eventuality mentioned therein existed when the impugned notification was issued by the Central Board of Indirect Taxes and Customs.
3. It was therefore submitted that such extension is not sustainable in law and is contrary to the provision of Section 168A of the Act.
4. Considering the above submissions, issue Notice returnable on 8th February, 2024. By way of ad-interim relief, no final order shall be passed by the respondent authority pursuant to the show-cause-notice issued during the period extended by the impugned notification without permission of the Court till the next date of hearing. Direct service is permitted.
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