Case Law Details
SRSS Agro Pvt. Ltd. Vs Union of India (Gujarat High Court)
Gujarat High Court to examine validity of Notification extending period for proceedings initiated by Revenue Department
Introduction: The Gujarat High Court recently adjudicated on the matter of SRSS Agro Pvt. Ltd. vs Union of India, questioning the validity of Notification No. 09/2023-Central Tax, which extended the time limit specified under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act).
M/s. SRSS Agro Pvt. Ltd. (“the Petitioner”) filed a writ petition contending that, Notification No. 09/2023- Central Tax dated March 31, 2023, wherein the time limit specified under Section 73 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) has been extended is unjustified as the extension of time limit can be made under special circumstances only. Also, once the period has been extended vide Notification No. 13/2022-Central Tax dated July 5, 2022, no subsequent extension can be made.
The Court directed that the Petitioner shall be granted time if the Petitioner asks time for filing reply to the Show Cause Notice.
The Court issued a Notice to the Respondent which is returnable on November 30, 2023. Further, the next date granted by the Court in the aforementioned matter is January 12, 2024.
Conclusion: The case of SRSS Agro Pvt. Ltd. vs Union of India before the Gujarat High Court brings attention to the nuanced legal aspects of extending time limits under the CGST Act. The court’s decision to examine the validity of the extension and grant the petitioner an opportunity to respond to the show-cause notice adds complexity to the matter. As the case progresses, it will be crucial to monitor how the court interprets the legal framework governing such extensions and whether subsequent extensions are indeed permissible under the law.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. Heard learned advocate Mr. Avinash Poddar for the petitioner. It is the case of the petitioner that the notification dated 31.03.2023 extending the time limit specified under Section 73 of the Act by virtue of the powers under Section 168A of the Act is unjustified as extension has to be for special circumstances. Having once extended the period by virtue of notification dated 05.07.2022, no subsequent extension could be made.
2. Essentially, the notifications are of the Union of India and by virtue of such power the respondent No. 5 – State has issued a show-cause notice dated 29.09.2023.
3. Issue Notice to the respondents returnable on 11.2023.
4. In the event, the petitioner asks for time to reply to the show-cause notice, the same shall be granted.
Direct service to respondent No. 5 is permitted.
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