Sanjoy Mallick Vs Union of India & Ors. (Calcutta High Court)
In the case of Sanjoy Mallick vs Union of India & Ors., the Calcutta High Court addressed a jurisdictional issue regarding the extension of time limits for tax proceedings under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017. The petitioner contested the validity of notifications issued by the Central Board of Indirect Taxes and Customs (CBIC) that extended the deadline for initiating tax recovery proceedings for the period April 2018 to March 2019. According to the petitioner, these notifications, including one dated December 28, 2023, were not applicable as the alleged force majeure conditions no longer prevailed when the show-cause notice was issued on December 8, 2023. The petitioner argued that these extensions were a colorable exercise of power and sought a stay on the adjudication order dated April 26, 2024, along with the consequential tax demand.
The Court, recognizing the jurisdictional contention and citing a prima facie case, referred to a similar precedent in OSL Exclusive Pvt. Ltd. vs Union of India & Ors. (2024 SCC Online Cal 2826). It granted an interim stay on the impugned tax demand until February 28, 2025, or further orders, whichever is earlier. The respondents, including the State of West Bengal and the Central Government, were directed to file an affidavit-in-opposition within four weeks, with the petitioner’s reply to follow within two weeks thereafter. The matter is scheduled for hearing in January 2025. The judgment highlights critical issues surrounding the interpretation of Section 168A of the CGST Act and its applicability to extend statutory timelines in non-force majeure scenarios.
