2024 (7) TMI 1242 - HC - GST

Time Limitation - no findings or reasons for imposing the demand - non-appllication of mind - HELD THAT - It is considered apposite to set aside the impugned order and remand the matter before the Adjudicating Authority for a decision afresh. The Adjudicating Authority shall examine the reply filed by the petitioner to the impugned SCN and take an informed decision within a period of eight weeks from today. Petition disposed off by way of remand.

Summary

Issues:
Challenge to Order-in-Original, Jurisdictional grounds, Limitation period, Impugned Show Cause Notice, Notification validity under CGST Act, Unreasoned order, Remand for fresh decision, Barred by limitation under DGST Act.

Analysis:
The petitioner, an Indian health insurance company, challenged the Order-in-Original dated 29.04.2024, holding them liable for tax amounting to Rs. 17,09,10,077. The challenge was based on jurisdictional issues, lack of findings or reasons for the demand, and being time-barred. The petitioner contended that the Show Cause Notice issued on 27.12.2023 was also beyond the limitation period. The petitioner argued that while the time limit for assessment under the CGST Act was extended, no corresponding extension was provided under the DGST Act, raising concerns about jurisdiction and legality.

The petitioner further contested Notification No.56/2023-Central Tax, extending the time limit for issuing orders under the CGST Act, claiming it was ultra vires Section 168A of the CGST Act. They argued that the notification was issued post the COVID-19 disruption period without valid reasons, as no force majeure event existed at that time. The petitioner criticized the unreasoned nature of the impugned order, emphasizing that their detailed reply to the Show Cause Notice was not adequately considered.

During the proceedings, respondent counsel acknowledged the lack of reasons in the impugned order and supported setting it aside for this reason alone. Both parties agreed to remand the matter for a fresh decision by the Adjudicating Authority, with the petitioner reserving all rights and contentions, including the validity of the impugned notification. The Court set aside the impugned order, directing the Adjudicating Authority to reconsider the matter within eight weeks and assess if the order under Section 73 of the DGST Act was time-barred. The judgment clarified that all rights and contentions of the parties were preserved, and the petition was disposed of accordingly.