2024 (2) TMI 1208 - 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 issues involved in the judgment are the validity of Notification No. 9 of 2023 extending the limitation period under Section 73 of the Central Goods and Services Tax Act, 2017, and the conclusion of proceedings under Section 73 with a demand against the petitioner.

Validity of Notification No. 9 of 2023:
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 CGST Act, 2017.

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

Judgment Details:
The court noted that the order dated 31.12.2023 stated that no proper reply or explanation was received from the taxpayer, despite the petitioner submitting a detailed reply. The court found this observation unsustainable as the proper officer did not consider the reply on its merits but concluded that no proper reply was received without examining the petitioner's submission.

The court set aside the impugned order dated 31.12.2023 and remitted the matter to the proper officer for re-adjudication of the show cause notice under Section 73 within four weeks, providing an opportunity for a personal hearing to the petitioner. The challenge to Notification No. 9 of 2023 was left open, and the petition was disposed of accordingly.