GST Notifications Challenged: Interim Order Grants Six Weeks for Counter-Affidavits, Proceedings Continue Pending Comprehensive Review

The HC examined challenges to GST Act notifications regarding time extensions for show cause notices and procedural validity. The court granted respondents six weeks to file counter-affidavits and allowed proceedings to continue under an interim order. No final determination was made, with the case linked to a lead petition for comprehensive review of the notifications' legal standing and GST Council approval process.

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Issues involved: Challenge to validity of notifications under U.P. GST Act, 2020 and Central GST Act, 2017, time extension for show cause notice under Section 73(10) of U.P. GST Act, 2020, issuance of notification without approval of GST Council.

Validity of Notifications under U.P. GST Act, 2020 and Central GST Act, 2017:
In the connected Writ Tax No.1393 of 2023, challenge was raised regarding the validity of Notification No. 09/2023 dated 31.3.2023 and Notification No. 515/SI-2-23-9(47)/17-T.C215-U.P. Act- 1-2017-Order-(273/2023) dated 24.4.2023. It was argued that there was no valid reason for granting a second extension of time to issue a show cause notice under Section 73(10) of the U.P. GST Act, 2020. The show cause notice dated 30.9.2023 was deemed time-barred, with reliance on an interim order from a similar Writ Petition. The matter required consideration based on the facts and reasons noted in the lead case of Writ Tax No.1256 of 2023.

Issuance of Notification without Approval of GST Council:
In the present case, it was contended that the impugned Notification No.56 of 2023 dated 28th December, 2023, was issued solely under the Central GST Act, 2017, without prior approval of the GST Council. Moreover, no parallel notification had been issued under the UP GST Act, 2017. Due to these submissions and the facts highlighted, the matter was deemed to require further consideration, connecting it with Writ Tax No.1256 of 2023.

Court's Decision:
All respondents were represented, and they were granted six weeks to file a counter affidavit, with the petitioner allowed two weeks thereafter to file a rejoinder affidavit. The proceedings in pursuance of the impugned notice dated 25.12.2023 were permitted to continue in view of an interim order granted in the lead case. However, no final order could be passed without the leave of the Court, indicating a cautious approach pending further deliberation on the issues raised in the case.

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