Case Law Details
Garg Rice Mills & others Vs. State of Punjab & others (Punjab and Haryana High Court)
Introduction: In a significant legal development, the Punjab and Haryana High Court has issued a stay on the passing of final orders in Section 73 cases for the fiscal year 2018-19. The case in question, Garg Rice Mills & others vs. State of Punjab & others, delves into complex legal issues surrounding the Goods and Services Tax (GST) Act.
Detailed Analysis: The court’s decision inter alia relies on the pendency of CWP-27388-2022, titled M/s Midas Agro Foods Pvt. Ltd. Vs. Union of India & others, scheduled for 25.01.2024. This case, along with connected cases, challenges a circular dated 20.11.2017 (Annexure P-3), highlighting that stay had been declined in numerous cases following the stay on the judgment of the Andhra Pradesh High Court by the Apex Court on 21.11.2022.
Mr. Goyal, representing the petitioners, introduces an additional argument claiming that notices issued on 27.12.2023, for the financial year 2018-19, are time-barred. He challenges notifications dated 31.03.2023 & 28.12.2023 (Annexures P-9 & P-10) under Section 168A of the Central Goods & Services Tax Act, 2017, extending the time limit for passing orders under Section 73(10). The extension is contested, citing ongoing challenges in the Gujarat High Court and Allahabad High Court.
The petitioner distinguishes this case from earlier instances where stay was not granted, asserting that the show cause notices are now time-barred. Notice of motion has been accepted by Mr. Saurabh Kapoor, Addl.A.G. Punjab, on behalf of respondents No.1, 3 & 4, who seeks time to file a reply.
The court has scheduled further proceedings, allowing them to continue, but prohibits the passing of a final order until the next hearing on 25.01.2024.
Conclusion: The stay order by the Punjab and Haryana High Court adds a layer of complexity to the ongoing legal challenges surrounding GST Act provisions and timelines for passing final orders. The court’s meticulous consideration of time-barred notices and challenges to statutory extensions emphasizes the need for a thorough examination of procedural aspects in tax-related cases. The matter is set to evolve as the respondents prepare their reply, and the court reconvenes on 25.01.2024.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
Inter alia relies upon pendency of CWP-27388-2022 titled M/s Midas Agro Foods Pvt. Ltd. Vs. Union of India & others, pending for 25.01.2024 along with connected cases in which challenge is to circular dated 20.11.2017 (Annexure P-3) in which stay has been declined in a large number of cases at a subsequent point of time after noticing that the judgment of the Andhra Pradesh High Court had been stayed by the Apex Court on 21.11.2022 in SLP Diary No.30552 of 2022 and thus, the earlier stay granted on 15.03.2021 wherein it had been directed that no coercive steps will be taken has been watered down.
Mr. Goyal has thus raised an additional argument in the present cases by submitting that the notices issued on 27.12.2023 (Annexures P-11 to P-20) for the financial year 2018-19 are time barred and has raised a challenge to the notifications dated 31.03.2023 & 28.12.2023 (Annexures P-9 & P-10) issued under Section 168A of the Central Goods & Services Tax Act, 2017 whereby time limit for passing the order under Section 73(10) has been extended. The extension thus granted by virtue of the said notifications are subject matter of challenge before the Gujarat High Court at Ahmedabad by placing reliance upon the interim order dated 21.12.2023 passed in M/s New Acid Baroda Pvt. Ltd. Vs. Union of India and the interim order dated 17.11.2023 of the Allahabad High Court wherein also it has been directed that proceedings in pursuance of the show cause notice may go on but the final order shall not be passed.
It is accordingly, submitted that the show cause notices dated 27.12.2023 (Annexures P-11 to P-20) now issued would be time barred and thus, he has distinguished the earlier set of cases wherein stay was not granted.
Notice of motion.
Mr. Saurabh Kapoor, Addl.A.G. Punjab accepts notice on behalf of respondents No.1, 3 & 4 and prays for time to file reply.
To come up for service of respondents No.2, 5 & 6 by way of dasti process for 25.01.2024.
In the meantime, proceedings may carry on but the final order may not be passed.
Photocopy of this order be placed on the file of other connected case (s).
