Tvl. N.V.R. Sons Vs Union of India (Madras High Court)
The abovementioned writ petition has been filed challenging the Notification No.56/2023 Central Tax, dated 28.12.2023, G.O.(Ms)No.1 of the Commercial Taxes and Registration (B1) Department dated 02.01.2024 and the assessment order dated 26.04.2024 passed for the AY 2018-2019.
It was submitted on behalf of the petitioner that Notification No.56/2023-CT dt. 28.12.2023 and G.O.(Ms)No.1 dated 02.01.2024, are arbitrary, without jurisdiction, capricious, excessive and contrary to the provisions of Section 168A of the CGST Act & 168A of TNGST respectively. Furthermore, it violates Articles 14 and 19(1)(g) of the Constitution of India, as it imposes unjustified restrictions without a rational basis and infringing upon the petitioner’s right to equality and the right to practice any profession or to carry on any occupation, trade or business. Assessment Order dated 26.04.2024 was made without conducting a detailed enquiry as department failed to verify critical documents, including GSTR-1, the auto-populated GSTR-2A, the offset summary and GSTR-9 for the FY 2018-2019, which is in clear violation of principles of natural justice. Section 168A of the CGST was inserted as an extraordinary measure to empower the Government to extend time limits due to force majeure circumstances, specifically the severe impact of the COVID-19 pandemic. The impugned notifications and the assessment order do not align with the purpose and spirit of Section 168A of the TNGST, as they fail to consider the post-pandemic recovery period and the adequate time already provided for compliance under the earlier notifications.
