Tax Recovery Case: Interim Relief Granted with Conditional Reply and Temporary Halt on Final Order Under CGST Act

HC granted interim relief in tax recovery case, directing petitioner to file reply to Show Cause Notice by 15.03.2024. Court prohibited final order on Notice until returnable date, considering similar interim protections by other HCs and referencing CGST Act provisions on time limit extensions.

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Issues Involved:
The issues involved in the judgment are the challenge to Notification no. 09/2023 - Central Tax dated 31.03.2023 and a Demand-cum-Show Cause Notice issued by the respondent to the petitioner.

Notification Challenge:
The Notification dated 31.03.2023 extended the time limit under Section 73 of the CGST Act for issuance of an order for recovery of tax not paid or short paid. The petitioner contested that the extension was not justified as there was no COVID-19 pandemic after 2022, citing a Supreme Court order limiting the extension. The petitioner also highlighted similar interim protections granted by other High Courts.

Legal Precedent:
The Standing Counsel for CGST referenced a Civil Appeal where the Supreme Court dealt with challenges to rules made under governing statutes.

Observations and Directions:
The court noted the definition of "force majeure" under Section 168A of the CGST Act and previous extensions of time limits. Considering the interim reliefs granted by other High Courts, the petitioner was directed to file a reply to the Show Cause Notice by 15.03.2024. The proceedings could continue until the returnable date, but no final order regarding the Notice should be passed until then.

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