Taxpayer Wins GST Challenge: Detailed Response Invalidates Demand Order Under Section 73

HC examined a GST case involving Section 73 extension of limitation period and subsequent demand order. Despite the tax authority claiming no proper reply was received, the court found the taxpayer's response was detailed. HC set aside the order, directing re-adjudication within four weeks and providing personal hearing opportunity to the taxpayer, while leaving the challenge to the limitation notification open.

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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.

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