2023 (1) TMI 982 - HC - GST

Extension of time limit for issuance of the order - extension of time limit for issuance of show cause notice as well - Section 73 of the CGST/SGST Act - HELD THAT - It is clear from a reading of sub-section(2) of Section 73 that, the show cause notice to be issued under sub-section(1) of Section 73 has to be issued at least three months prior to the time limit specified in sub-section(10) for issuance of order. When the time limit for issuance order under sub-section(10) of Section 73 for the financial year 2017-18 has been extended upto 30.09.2023, the only interpretation that can be placed on the provisions of sub-section(2) of Section 73 is that, the show cause notice can also be issued with reference to the date 30.09.2023 and not with reference to any other date. There is absolutely no ambiguity in the provisions requiring this Court to apply any rule of interpretation in favour of the assessee. The petitioner has not made out any case for interference under Article 226 of the Constitution of India as it cannot be found that the impugned orders are issued without jurisdiction - petition dismissed.

Summary

Issues:
Challenge to Ext.P4 order under Section 73 of CGST/SGST Acts - Jurisdiction of the Court - Interpretation of time limits for proceedings under Section 73.

Analysis:

1. Challenge to Ext.P4 Order: The petitioner contested the Ext.P4 order issued by the 1st respondent under Section 73 of the CGST/SGST Acts, imposing a liability of Rs.9,70,596/- for CGST and SGST for the period from July 2017 to March 2018. The petitioner argued that the proceedings leading to Ext.P4 were without jurisdiction, justifying the invocation of writ jurisdiction under Article 226 of the Constitution of India, despite the availability of alternate remedies.

2. Interpretation of Time Limits: The petitioner contended that the time limit for completing proceedings under Section 73 is three years from the due date for the annual return for the relevant financial year. Referring to Ext.P6 notification extending the time limit for the financial year 2017-18, the petitioner argued that only the time limit for issuing the order was extended, not the time limit for issuing a show cause notice. The Senior Government Pleader, however, argued that the extension of the order issuance time limit automatically extends the show cause notice issuance time limit.

3. Legal Interpretation: The Court analyzed Section 73 of the CGST/SGST Acts, particularly sub-sections (1) and (2), which outline the issuance of a show cause notice and the time limit for the same. The Court emphasized that the show cause notice must be issued at least three months prior to the time limit specified for issuing the order. Given the extension of the order issuance time limit to 30.09.2023, the Court concluded that the show cause notice could also be issued with reference to this date, without ambiguity in the provisions necessitating interpretation in favor of the assessee.

4. Judicial Precedent: Citing the Supreme Court's ruling in Commissioner of Customs (Import), Mumbai v. M/s. Dilip Kumar and Company, the Court highlighted the importance of the plain meaning rule in tax law interpretation. The Court underscored that when statutory language is clear and unambiguous, there is no room for interpretation, especially when dealing with procedural time limits for tax proceedings.

5. Final Decision: The Court dismissed the writ petition, finding no grounds for interference under Article 226, as the impugned orders were not issued without jurisdiction. The petitioner was granted an extension of two weeks to file an appeal against the Ext.P4 order, with the assurance that if the appeal is filed within this period, it will be considered timely, and the appellate authority will review it on merits.

In conclusion, the judgment addressed the challenge to Ext.P4 order under Section 73 of the CGST/SGST Acts, focusing on the jurisdiction of the Court and the interpretation of time limits for proceedings. The Court's detailed analysis of the legal provisions and precedents underscored the importance of clarity in statutory language and upheld the extension of time limits for both show cause notice and order issuance.