2024 (5) TMI 1139 - HC - GST

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 ... Extension of limitation under Section 168A of the CGST Act, 2017 - time limit for issuance of order under Section 73(10) - ineligible input tax credit - force majeure (including epidemic) - Explanation to Section 168A - interim relief - stay of recoveryInterim relief - stay of recovery - ineligible input tax credit - extension of limitation under Section 168A of the CGST Act, 2017 - time limit for issuance of order under Section 73(10) - Whether recovery of the amount assessed by the Order in Original dated 30.04.2024 will be stayed pending further orders of the Court - HELD THAT: - The Court noted that Notifications issued under the power conferred by Section 168A had extended the time limit under sub section (10) of Section 73 for issuance of orders relating to the specified financial years and that an Order in Original determining recovery as ineligible input tax credit had been passed against the petitioner. The Court observed the Explanation to Section 168A which treats an epidemic as a form of force majeure and recorded that various High Courts, including this Court, have granted interim protection in comparable matters by permitting proceedings to continue but restraining final orders or recovery. Having regard to those aspects and the fact that similar issues are under examination in different High Courts, the Court was inclined to afford interim protection to the petitioner in the form of restraint on enforcement of the recovery determined by the impugned Order in Original until further orders of this Court. [Paras 9, 10, 11]Recovery of the amount assessed by the Order in Original dated 30.04.2024 shall not be enforced until further orders of this Court.Final Conclusion: Interim protection granted: enforcement of recovery under the Order in Original dated 30.04.2024 is stayed until further orders of the High Court. 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.