EXPANSION OF LIMITATION PERIOD

[Sadanand Bulbule]

Dear Sir/s

1. Since 01/07/2017 many indirect tax laws have been repealed to give effect to the CGST Act and the State GST Acts. The effect of the repeal is to obliterate the statue repealed as completely as if it had never been passed and it is to be considered as a law which never existed except for those purposes of those actions or suits which were commenced, prosecuted and concluded while it was as an existing law which are specifically saved under the respective GST Acts,

2. Legal position being so, on account of COVID-19 & consequential lockdown, the assessments which are to be concluded within five years timeline gets expired by this month end for the financial year 2015-16. The similar time limitation applies to other areas of appeals/revisions/rectifications too. Therefore whether the State Government can enlarge the time limitation period by importing the power vested under “Power to remove difficulties” of the repealed VAT Act? If yes, how about its validity?

3. Lot of academic queries are being received in this regard. Please throw light on this issue.

Mask yourself. Stay at home.

With profound regards.

AI Summary

Power to remove difficulties can extend tax limitation periods due to pandemic disruptions, preserving continuation of pre-repeal proceedings.
The central operative position is that the CGST Act's statutory savings provision preserves investigations, assessments, adjudications and recovery relating to repealed VAT/CST laws so such proceedings may be continued and orders passed after repeal treated as arrears under GST; concurrently, the executive power to remove difficulties under CGST/SGST can be used by State governments to extend prescribed limitation periods where factual impediments like the pandemic prevent completion of statutory actions, subject to the enabling provision's scope and conditions; typographical omissions in such orders do not necessarily invalidate them if substantive requirements are met.