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TMI Blog2024 (5) TMI 1183X X X X Extracts X X X X X X X X Extracts X X X X ..... ich could not be completed or complied with due to force majeure. No one can deny that COVID-19 was a force majeure as it was a pandemic that caused large-scale human tragedy and suffering all over the world and paralyzed the world, including economic activities. Extension of time limit - HELD THAT:- How much time could have been extended considering the pandemic is the discretion of the Executive, which has been taken based on the recommendation of the GST Council. It is not found that the notifications impugned in the writ petition in Exts. P7 and P8 are ultra vires the provisions of Section 168A of the CGST/SGST Act. The Government is well within the power to extend the limitation for completing the proceedings and taking action under Section 73 of the Act by issuing notification under Section 168A of the GST Act if there is force majeure. COVID-19 was a force majeure, and taking into account the various factors, the time limit has been extended. Therefore, there are no substance in the challenge to the said notifications, and the writ petition is dismissed to that extent. As the Government itself has come out with Circular No. 183/15/2022-GST dated 27.12.2022 to deal with the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... outward supplies for July to September 2017, and therefore, these values were shown in its annual return for 2017-18 in GSTR-9 indicating total input credit and output tax . 2.2 The petitioner received a notice dated 15.02.2023 in Form DRC-01A issued by the 1st respondent intimating the petitioner that the petitioner had not paid GST on outward supplies made from 07/2017 to 09/2017 and directed the petitioner to pay the same with applicable penalty and interest. The petitioner filed a reply to the show cause notice dated 04.03.2023, pointing out that the petitioner had claimed input tax credits for 07/2017 to 09/2017, which were omitted to be reported and set off the same against output tax liability. The petitioner paid Rs. 88,386/- each under the CGST and KGST, being the shortfall. 2.3 Another show cause notice dated 16.03.2023 was issued by the 1st respondent proposing to demand Rs. 1,16,75,250/- as output liability on the value of outward supplies for the period 07/2017 to 09/2017, along with interest and penalty. The petitioner filed a reply to the show cause notice refuting the allegations and maintained that the output credit was claimed in GSTR-9, though the same was omitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mic, flood, drought, fire, cyclone, earthquake, or any other calamity caused by nature or otherwise affecting the implementation of any of the provisions of the Act. Ext. P7 notification does not indicate any calamity caused by nature or otherwise affecting the passing of Ext. P1 order under Section 73 (9) of the GST Act within the time stipulated by the Act. Therefore, the notifications are ultra vires and the impugned order in Ext. P1 being time-barred is without jurisdiction. 3.4 The learned Counsel for the petitioner also submits that taking the COVID-19 situation, by notification No. 35/2020-Central Tax dated 03.04.2020, issued by the Central Board of Indirect Taxes and Customs, the time period had been extended till 30.06.2020 and by further notification No. 14/2021 dated 01.05.2021 the time period was extended to 31.05.2021. Therefore, there was no occasion to extend the further time period by Exts. P7 and P8 as force majeure, as defined in the Explanation to Section 168A of the Act, was not present. 4. The learned Counsel for the petitioner submits that considering the difficulties faced during the initial years of the GST regime for the Financial Year 2017-18 and 2018-19, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or CMA shall contain UDIN. UDIN of the certificate issued by CAs can be verified from ICAI website https://udin.icai.org/search-udin and that issued by CMAs can be verified from ICMAI website https://eicmai.in/udin/VerifyUDIN.aspx. 4.1.2 In cases, where the difference between the ITC claimed in FORM GSTR-3B and that available in FORM GSTR-2A of the registered person in respect of a supplier for the said financial year is upto Rs 5 lakh, the proper officer shall ask the claimant to produce a certificate from the concerned supplier to the effect that said supplies have actually been made by him to the said registered person and the tax on said supplies has been paid by the said supplier in his return in FORM GSTR-3B. 4.2 However, it may be noted that for the period FY 2017-18, as per proviso to section 16 (4) of the CGST Act, the aforesaid relaxations shall not be applicable to the claim of ITC made in the FORM GSTR-3B return filed after the due date of furnishing return for the month of September 2018 till the due date of furnishing return for March, 2019, if supplier had not furnished details of the said supply in his FORM GSTR-1 till the due date of furnishing FORM GSTR-1 for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of actions which cannot be completed or complied with due to force majeure. [2]: The power to issue notification under sub-section [1] shall include the power to give retrospective effect to such notification from a date not earlier than the date of commencement of this Act. Explanation: For the purposes of this section, the expression force majeure means a case of war, epidemic, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature or otherwise affecting the implementation of any of the provisions of this Act. 6.2 Thus, if there is force majeure as defined in Section 168A, the Government is empowered to extend the limitation period for taking actions which could not be completed or complied with due to force majeure. No one can deny that COVID-19 was a force majeure as it was a pandemic that caused large-scale human tragedy and suffering all over the world and paralyzed the world, including economic activities. 7. The notifications in Exts. P7 and P8 were issued by the Central Government on the recommendation of the GST Council based on a suo motu order passed by the Supreme Court in consideration of the COVID-19 pandemic. The GST Council, in its 47 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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