Case Law Details
Aadi Shakti Ent Udyog Vs Goods And Service Tax Council And 4 Others (Allahabad High Court)
In the case of Aadi Shakti Ent Udyog vs. Goods And Service Tax Council & Others, the Allahabad High Court addressed a writ petition challenging the validity of GST notifications extending the time limit under Section 73 of the CGST Act. The petitioner sought to quash the order dated April 26, 2024, issued under Section 73, claiming it was arbitrary and not in accordance with legal procedures. Additionally, the petitioner challenged the GST notifications extending the time limit as being ultra vires Section 168A of the GST Act and in violation of Article 14 of the Constitution. The court found that the April 26 order had been passed ex parte without a hearing and decided to quash it, directing that a new order be issued with an opportunity for the petitioner to be heard within eight weeks. The court did not address the constitutional validity of the extended time limits or the notifications themselves, focusing instead on procedural fairness. The case was disposed of with the directive for a reasoned order to be issued afresh.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard learned counsel for the petitioner, Sri Gopal Verma, learned counsel appearing on behalf of the respondent Nos.1 and 2, Sri Gaurav Mahajan, learned counsel appearing on behalf of the respondent No.3 and Sri Ankur Agarwal, learned Standing Counsel appearing on behalf of the State.
2. This is a writ petition under Article 226 of the Constitution of India wherein the petitioner has prayed for the following substantial reliefs:
“I. Issue a writ, order or direction in the nature of CERTIORARI quashing the impugned order passed under Section 73 of the UPGST/CGST Act, 2017 dated 26/04/2024 (Annexure No. 1) by declaring it to be arbitrary, vague and against the procedure established by law for reasons stated in the writ petition.
II. Issue a writ, order or direction in the nature of MANDMUS declaring that Notification No. 56/2023-Central Tax(CGST) dated 28/12/2023 issued by respondent no. 2 (Annexure No. 2) as well as Notification No. 13/XI-2-24-9(47)/17-T.C.250- UP Act-1- 2017-Order-(311)-2024 dated 7/2/2024 issued by respondent no. 3 (Annexure No. 3) extending the time limit prescribed under Section 73(10) of GST Act, 2017 has been extended is ultra vires Section 168A of GST Act, 2017 being arbitrary and violative of Article 14 of the Constitution of India and are liable to be stuck down.”
3. Upon perusal of the documents, it is apparent that the impugned order dated April 26, 2024 was an order passed ex parte without granting an opportunity of hearing to the petitioner.
4. Ld. Counsel appearing on behalf of the parties have consented that the order dated April 26, 2024 may be quashed and set aside with a direction upon the authority concerned to grant an opportunity of hearing to the petitioner and thereafter pass an order in a time bound manner.
5. Accordingly, the order dated April 26, 2024 is quashed and set aside with a direction upon the authority concerned to grant an opportunity of hearing to the petitioner and thereafter pass a reasoned order within eight weeks from date. We make it cleat that since the order is being passed de novo, the question of limitation shall not arise. The petitioner shall not be allowed any adjournment in the said matter.
6. With the above direction, the writ petition is disposed of.
7. Since the impugned order dated April 26, 2024 was passed in the month of April 2024 and was within the extended time as recommended by the GST Council, we are not going into the aspect of vires of Section 73(10) of the Central Goods and Services Tax Act, 2017 and the related sections and notifications.
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