Gauhati HC stays GST Recovery Based on Extension Granted via Notification No.09/2023-CT

Where High Courts through out the country have granted interim relief to carry on the proceedings on the strength of extension of time under section 73(10) of the CGST Act vide Notification No.09/2023-CT dated 31/03/2023 but with a direction not to pass any final orders, the Hon’ble Gauhati High Court has restrained the GST Authorities from recovery of the amount assessed on the strength of extension of time under section 73(10) vide Notification No.09/2023-CT dated 31/03/2023.

The case projected by the Petitioner was that final order under section 73(10) of CGST/SGST Act could not have been passed after 31.12.2023 i.e. three years after 31.12.2020 which was the last date of filing annual return for the year 2018-19. It was further submitted that show cause notices in such matters could not have been issued after 30.09.2023 i.e. three months before 31.12.2023 as mentioned here-in-before.

Inspite of vehement opposition by GST Authorities stating that onset of Covid19 pandemic affected their compliances adversely and therefore, GST Council recommended the extension of time under section 73(10) of the Act as well as that State of Assam adopted the notification issued by Central GST Authorities without issuing any such notification of their own, the Hon’ble Gauhati Court restrained the GST Authorities from recovery of the amount assessed on the strength of extension of time under section 73(10) vide Notification No.09/2023-CT dated 31/03/2023 and issued notice to the GST Authorities to show cause why appropriate reliefs shall not be granted to the Petitioner.