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2024 (3) TMI 114 - HC - GSTValidity of SCN - validity of extension of outer time limit provided in the statute for issuance of notice under sub-Section (2) of Section 73 of the GST Act - HELD THAT - Taking into consideration the fact that a jurisdictional issue has been raised and a prima facie case has been made out by the petitioner, however, considering the fact that fiscal policy of the State is involved and the fact that a co-ordinate Bench of this Court, by order dated 13th February 2024, in an identical matter had been pleased to pass a limited interim order, it is not proposed to stay the impugned show cause notice, the respondents shall continue with the impugned proceeding but no final order shall be passed without the leave of this Court. The issue involved in the writ application would be decided upon exchange of affidavits - Let affidavit-in-opposition be filed within a period of 4 weeks from date. Reply, if any, thereto be filed within two weeks thereafter - Liberty to mention after expiry of the period for exchange of affidavits.
Issues involved: Challenge to show cause notice under Section 73 of the CGST/WBGST Act 2017, extension of time limit for issuance of order, validity of notification extending time limit, jurisdictional issue, stay of show cause notice.
Challenge to show cause notice under Section 73: The petitioner filed a writ application challenging the show cause notice dated 15th January 2024 issued under Section 73 of the GST Act. The petitioner argued that there is an outer time limit provided in the statute itself for issuance of such notice. The respondents extended the time limit through notifications dated 31st March 2023 and 28th December 2023, which the petitioner contended was a colorable exercise of power. The petitioner claimed that a valuable right had accrued and sought a stay on the show cause notice to prevent the completion of the process and the passing of a final order. Extension of time limit for issuance of order: The respondents extended the time limit specified in Section 73 of the GST Act for the issuance of orders relating to tax recovery and input tax credit. The petitioner argued that the notifications extending the time limit were not valid as they were issued in a colorable exercise of power. The petitioner pointed out that a power to extend time limits in special circumstances due to force majeure was conferred on the Government by Section 168A of the GST Act. Jurisdictional issue and stay of show cause notice: The Court considered the jurisdictional issue raised by the petitioner and noted that a prima facie case had been made out. However, due to the involvement of the fiscal policy of the State and a previous interim order by a co-ordinate Bench, the Court decided not to stay the show cause notice. The respondents were allowed to continue with the proceeding, but no final order could be passed without the Court's permission. The Court directed the filing of affidavits and extended the time for response to the show cause notice. In conclusion, the Court addressed the challenge to the show cause notice under Section 73 of the GST Act, the extension of time limits for issuance of orders, the jurisdictional issue, and the decision regarding the stay of the show cause notice. The Court allowed the proceeding to continue but restricted the passing of a final order without its leave, emphasizing the need for exchange of affidavits and extending the time for response to the show cause notice.
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