Abhiram Marketing Services Limited Vs Union of India (Chhattisgarh High Court)
High Court Dismisses Petition Challenging Notification No. 56/2023 Due to Availability of Alternative Remedy Under Section 107 of CGST Act
Petitioner is a registered taxpayer with GSTIN under CGST & SGST. The petitioner was a dealer engaged in the business of trading stoves, ranges, grates and cookers etc. During COVID, CBDT issued certain notifications extending time limit for compliance of any action by authorities or tax payers. Notification No.56/2023- Central Tax dated 28.12.2023 was issued u/s 168-A of CGST by extending the limitation for concluding the adjudication of show cause notice issued u/s 73 for the tax period 2019-20 till 31.08.2024. However, no such notification was issued under SGST. Assistant Commissioner of State Tax issued SCN dt 29.05.2024 for period 2019-20 proposing to levy tax u/s 73 on the ground that the Petitioner claimed excess Input Tax Credit (“ITC”) to the tune of Rs.40,22,339/-. In absence of any reply order dt.27.08.2024 has been passed confirming the tax liability of Rs. 43,75,104/- and penalty in a sum of Rs.4,37,510/- along with interest in a sum of Rs.34,17,616/- u/s 50 GST Act.
It was argued by the appellant that though an appeal u/s 107 GST Act lies to the appellate authority but extension of time granted to conclude the proceedings u/s 73 for the year 2019-20, can be agitated before the court. Impugned order was passed against the petitioner without authority of law and jurisdiction. SCN and impugned order alongwith the summary order, are beyond the time specified in Notification No. 4/2021-Central Tax, dated 28.02.2021. Invocation of Section 168A of CGST Act to issue notification No. 56/2023, without there being any corresponding Notification issued
under the SGST Act is illegal and without jurisdiction. Reliance is placed on the decision of the Gauhati High Court in M/s. Barkataki Print & Media Services, Dhrubajyoti Barkotoky & Others v. Union of India & others {2024 (9) TMI 1398 – Gauhati High Court} wherein the impugned Notification
No. 56/2023 has been declared ultra vires the provisions of Section 168A of the GST Act. On the other hand, revenue argued that since the petitioner has alternative efficacious remedy of appeal under Section 107, this petition is not maintainable.
