2024 (11) TMI 823 - HC - GST

Extension of time limits for filing annual returns under GST Acts - Validity of SCN - N/N. 56/2023-Central Tax dated 28.12.2023 - HELD THAT - As the time limit for passing an Order under Section 73 9 of the CGST/AGST Act, 2017 for the Financial Year 2017-2018, extended by the Notification no. 09/2023-Central Tax dated 31.03.2024, has been holding the field, this Court does not find any ground to interfere with the Order-in-Original dated 30.12.2023 passed by the Adjudicating Authority as the petitioner has an adequate, efficacious and statutory remedy of appeal under Section 107 of the CGST/AGST Act, 2017. It has been settled by a long line of decisions including the decision in PHR INVENT EDUCATIONAL SOCIETY VERSUS UCO BANK AND OTHERS 2024 (4) TMI 466 - SUPREME COURT (LB) , to the effect that when an efficacious, alternative, adequate and statutory remedy of appeal is available, then a writ petition under Article 226 of the Constitution of India is not to be entertained, unless the petitioner has been able to make out any of the grounds - a the writ petition has been filed for the enforcement of a fundamental right protected by Part III of the Constitution; b there has been a violation of the principles of natural justice; c the order or proceedings are wholly without jurisdiction; or d the vires of a legislation is challenged. The petitioner is at liberty to prefer an appeal against the Order-in-Original dated 30.12.2023 passed by the Adjudicating Authority for the Financial Year 2017-2018 under Section 107 of the CGST/AGST Act, 2017. This writ petition stands disposed of.

Summary

Issues:
Challenge to extension of time limits for filing annual returns under GST Acts.
Validity of Show Cause Notices under CGST/AGST Acts.
Interference with Notification no. 56/2023-Central Tax dated 28.12.2023.
Jurisdiction of the High Court to entertain writ petitions under Article 226 of the Constitution of India.
Clubbing of multiple causes of action in a single writ petition.

The judgment dealt with the challenge to the extension of time limits for filing annual returns under the GST Acts. The petitioner, a registered assessee under the CGST/AGST Acts, received two Show Cause Notices for alleged under-declaration of tax and excess claim of Input Tax Credit (ITC). The time limits for submitting annual returns for the respective financial years were specified under the Acts. The Central Government, on GST Council's recommendation, extended the time limits through notifications. The validity of one such extension, particularly for the financial year 2018-2019, was challenged on the grounds of lack of GST Council recommendation before issuance.

After responding to the Show Cause Notices, the petitioner faced Orders-in-Original under Section 73[9] of the CGST/AGST Acts, holding them liable to pay specified amounts. The judgment highlighted that while the time limit for the financial year 2017-2018 was extended and remained valid, the extension for 2018-2019 was subject to challenge. The High Court emphasized the availability of an appeal remedy under Section 107 of the Acts, citing precedents that discourage entertaining writ petitions under Article 226 unless fundamental rights enforcement, jurisdictional issues, natural justice violations, or legislative vires challenges are raised.

Regarding the clubbing of multiple causes of action in a single writ petition, the High Court clarified that the petitioner could separately challenge the Order-in-Original for the financial year 2018-2019 without prejudice. The judgment disposed of the writ petition without costs, affirming the statutory appeal route for the petitioner to contest the Orders-in-Original. The Court refrained from delving into the merits of the case, maintaining the option for the petitioner to pursue a separate writ petition for the 2018-2019 financial year issue if advised to do so.

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