2024 (2) TMI 1207 - HC - GST

Extension of period of limitation for issuance of show cause notice - Challenge to N/N. 9 of 2023 dated 31.03.2023 whereby the limitation period for exercise of power under Section 73 of the Central Goods and Services Tax Act, 2017 has been extended - proceedings under Section 73 of the Act have been concluded and a demand has been created against the petitioner - HELD THAT - The observation in the impugned order dated 31.12.2023 is not sustainable for the reasons that the reply filed by the petitioner is a detailed reply - The proper officer had to at least consider the reply on merits and then form an opinion whether the explanation was sufficient or not. He merely held that no proper reply/explanation has been received which ex-facie shows that proper officer has not even looked at the reply submitted by the petitioner. The impugned order dated 31.12.2023 is set aside. The matter is remitted to the proper officer for re-adjudication of the show cause notice issued under Section 73 of the Act within four weeks after giving an opportunity of personal hearing to the petitioner - challenge to Notification No. 9 of 2023 is left open - petition disposed off.

Summary

Issues involved:
The judgment involves the extension of limitation period under Section 73 of the Central Goods and Services Tax Act, 2017 and the conclusion of proceedings under the same section resulting in a demand against the petitioner.

Extension of Limitation Period:
The petitioner challenged Notification No. 9 of 2023 dated 31.03.2023, which extended the limitation period for exercising power under Section 73 of the Act.

Conclusion of Proceedings:
The petitioner also challenged an order dated 31.12.2023 where proceedings under Section 73 were concluded, and a demand was created against the petitioner. The petitioner had submitted a detailed point-wise reply to the Show Cause Notice dated 24.09.2023.

Analysis of the Judgment:
The order dated 31.12.2023 stated that no proper reply or explanation was received from the taxpayer despite opportunities, suggesting the taxpayer had nothing to say. However, the court found the reply submitted by the petitioner to be detailed and criticized the proper officer for not considering it on merits.

Judicial Decision:
The court set aside the impugned order dated 31.12.2023 and remitted the matter to the proper officer for re-adjudication within four weeks, with an opportunity for the petitioner to have a personal hearing. The challenge to Notification No. 9 of 2023 was left open, and the petition was disposed of accordingly.