Mahabir Tiwari Vs Union of India and 4 Ors (Gauhati High Court)
Gauhati High Court has set aside a crucial notification extending the time limit for issuing Goods and Services Tax (GST) orders for the financial year 2019-20, deeming it ultra vires the Central Goods and Service Tax Act, 2017 (CGST Act). This ruling, delivered in the case of Mahabir Tiwari Vs. Union of India and 4 Others, directly impacts numerous similar cases and has led to the quashing of demand-cum-show cause notices and original orders issued based on the invalidated extension.
The petitioner, Mahabir Tiwari, a businessman, challenged Notification No. 56/2023-Central Tax, dated December 28, 2023, along with a subsequent demand-cum-show cause notice dated May 30, 2024, and an Order-in-Original dated August 29, 2024, issued by the respondent authorities. The core of the petitioner’s argument rested on the interpretation and application of Section 168A of the CGST Act, 2017.
Background of the Dispute
Section 168A of the CGST Act grants the Government power to extend time limits prescribed under the Act in “special circumstances,” specifically when actions cannot be completed or complied with due to force majeure. This extension, however, is contingent upon the recommendations of the GST Council.
