Merle Construction and Marketing Pvt. Ltd. Vs Union of India and 3 Ors (Guwahati High Court)
In the case of Merle Construction and Marketing Pvt. Ltd. Vs Union of India and others, the Gauhati High Court addressed a petition challenging the validity of Notification No. 56/2023 issued by the Central Board of Indirect Taxes and Customs, which extended the deadline for passing orders under Section 73(9) of the CGST Act, 2017. The petitioner argued that the notification was ultra vires as it lacked the mandatory recommendation from the GST Council, making it inconsistent with Section 168A of the CGST Act, 2017. Additionally, the petitioner contended that the extension could not be justified as a “force majeure” since the COVID-19 period was over, and the reasons cited, such as lack of manpower, were insufficient to meet this standard. The Court acknowledged the petitioner’s arguments, particularly the absence of proper GST Council approval, and granted interim protection, preventing any coercive action based on the disputed assessment order. The Court also noted that the issue required further examination, including the applicability of the “force majeure” clause, and directed the respondents to file affidavits before the next hearing. The case is set to be reviewed again on August 21, 2024.
