Haldia Nirman Project Private Limited Vs Additional Commissioner of CGST & CX (Calcutta High Court)
In a pivotal judgment, the Calcutta High Court addressed the application of the extended period of limitation under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017. The case, Haldia Nirman Project Pvt Ltd Vs Additional Commissioner of CGST & CX, challenges the invocation of this extended period by the tax authorities for alleged violations spanning several financial years. The court’s ruling underscores the necessity for clear allegations of willful misstatements or suppression of facts to justify the extension of the limitation period.
Case Background
The petitioners, Haldia Nirman Project Pvt Ltd, challenged an order dated 31st January, 2024, issued under Section 74 of the CGST Act. This order followed a show cause notice dated 2nd August, 2023, which invoked the extended period of limitation for the financial years 2017-18 to 2021-22. The petitioners argued that the notice was issued beyond the ordinary limitation period and lacked a substantive basis for invoking the extended period.
Petitioners’ Arguments
The petitioners contended:
1. Invalid Invocation of Extended Period: The show cause notice was issued beyond the normal three-year limitation period provided under Section 73(1). The notice cited vague allegations to justify the extended period.
2. Lack of Clear Allegations: They argued that the show cause notice failed to provide clear, specific allegations of willful misstatements or suppression of facts necessary to extend the limitation period.
3. Jurisdictional Challenge: The petitioners challenged the jurisdiction of the proper officer, asserting that the extended period was improperly invoked.
Respondents’ Defense
