Extension of Time Limit Not Applicable for Section 73 GST Orders for FY 2017-18

A.V. Pharma Vs State of U.P. (Allahabad High Court)

Notification extending time limit not applicable for passing of order under Section 73 for FY 2017-18

Summary: In the case of A.V. Pharma Vs State of Uttar Pradesh (Writ Tax No. 264 of 2024), the Allahabad High Court addressed whether a notification extending the time limit for issuing orders under Section 73 of the CGST Act, 2017, could apply retrospectively. The petitioner, M/s. AV Pharma, challenged two orders for FY 2017-18 issued in Forms GST DRC-13 and GST DRC-07 on the grounds that they were passed beyond the prescribed time limit of three years from the due date of filing the annual return. The due date for FY 2017-18 was February 5, 2023, but the impugned orders were dated October 5, 2024, and December 2, 2023. The department relied on a notification dated April 24, 2023, which retrospectively extended the time limit for passing orders under Section 73 until December 31, 2023. However, the court noted that the notification’s retrospective application was effective only from March 31, 2023, not prior. Since the prescribed time limit for issuing orders had expired on February 5, 2023, before the notification came into effect, the court held that the notification could not revive jurisdiction to issue the impugned orders. Consequently, the High Court quashed the orders as being time-barred and directed the department to unfreeze the petitioner’s bank accounts.