Engineers India Limited Vs Union of India & Ors (Delhi High Court)
The case of Engineers India Limited Vs Union of India & Ors before the Delhi High Court is part of a larger batch of petitions challenging the validity of certain notifications issued under the Goods and Services Tax (GST) Act, 2017, which extended the time limit for adjudication of Show Cause Notices (SCNs) and the passing of final orders under Section 73 of the Act. Specifically, the petitioner challenges an adjudication order dated April 30, 2024, and Notification No. 09/2023-State Tax dated June 22, 2023.
Central Issue and Grounds for Challenge
The core issue is the validity of notifications issued to extend the statutory time limit for GST adjudication proceedings for past financial years. The challenge, as articulated in the lead matter DJST Traders Private Limited v. Union of India & Ors. (W.P.(C) No. 16499/2023), revolves around the procedure for issuing these extensions, particularly with respect to Section 168A of the Central Goods and Services Tax Act, 2017.
The petitioners broadly contend that the proper procedure was not followed, arguing that the prior recommendation of the GST Council is essential for extending deadlines under Section 168A.
- Notification No. 9/2023 (Central Tax): While a recommendation was made prior to issuance, the validity has been subject to challenge.
- Notification No. 56/2023 (Central Tax): The challenge is that the extension was granted contrary to Section 168A’s mandate, with ratification given subsequent to the notification’s issuance. The notification incorrectly stated it was on the GST Council’s recommendation.
- Notification No. 56/2023 (State Tax): This was challenged on the basis that it was issued after the expiry of the limitation period set by an earlier notification (No. 13 of 2022-State Tax).
Judicial Precedents and Conflicting Views
