DJST Traders Private Limited Vs Union Of India & Ors. (Delhi High Court)
The legal challenge surrounding the extension of deadlines for issuing GST show cause notices and orders has escalated to the Supreme Court, while the Delhi High Court in a related case addressed procedural fairness for a taxpayer.
DJST Traders Private Limited approached the Delhi High Court challenging a show cause notice issued under Section 73 of the GST Act and a Central Government notification (Notification No. 9/2023-Central Tax dated March 31, 2023) that extended limitation periods. This petition is part of a larger group of cases contesting similar notifications, including Notification No. 56/2023-Central Tax.
The core of the challenge to these notifications lies in the argument that the proper procedure under Section 168A of the CGST Act, 2017 was not followed. Section 168A allows the government to extend time limits in cases of ‘force majeure’ on the recommendation of the GST Council. Petitioners contend that the necessary recommendations either preceded the notifications improperly or, in the case of Notification No. 56/2023, ratification occurred after issuance, with the notification incorrectly stating it was based on a prior recommendation. Further, the invocation of ‘force majeure’ conditions post-2022 has also been questioned.
