Interim Relief Granted: CGST Recovery Order Suspended Pending Challenge to Time Limit Extensions During Pandemic Period

The HC granted interim relief by withholding enforcement of the recovery amount assessed in the Order-in-Original. The Court recognized the petitioner's challenge to the time limit extensions under CGST Act Notifications, considering ongoing examinations of similar issues by other HCs and referencing a SC order limiting pandemic-related extensions beyond 28.02.2022.

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Issues involved: Challenge to Notifications u/s 168A of CGST Act, Order-in-Original u/s 73 of CGST Act.

In a writ petition u/s Article 226 of the Constitution, the petitioner challenged Notification no. 09/2023 u/s 168A, Notification no. 56/2023-Central Tax, and an Order-in-Original dated 30.04.2024 u/s 73 of the CGST Act. The Notifications extended time limits for issuance of recovery orders under Section 73 of the CGST Act. The petitioner argued that the extension was unjustified post-2022 due to the absence of a COVID-19 pandemic, citing a Supreme Court order limiting extension to 28.02.2022. The petitioner also referenced interim protections granted by various High Courts to similar cases.

The Notifications were issued u/s 168A of the CGST Act, extending time limits for recovery orders u/s 73. The petitioner contended that post-2022, the pandemic was not a valid reason for extension, citing a Supreme Court order limiting extensions. The petitioner also highlighted interim protections granted by multiple High Courts to similar cases.

The petitioner challenged Notifications u/s 168A and an Order-in-Original u/s 73 of the CGST Act in a writ petition u/s Article 226. The Notifications extended time limits for recovery orders u/s 73. The petitioner argued against the post-2022 extension, citing a Supreme Court order and interim protections granted by various High Courts.

The Court noted the petitioner's arguments against the post-2022 extension of time limits for recovery orders u/s 73 of the CGST Act, based on a Supreme Court order and interim protections granted by other High Courts to similar cases. The Court decided to withhold enforcement of the recovery amount assessed in the Order-in-Original until further orders, considering ongoing examination of similar issues by different High Courts.

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