2025 (5) TMI 842 - HC - GST

Extension of the time limit u/s 73(10) of the WBGST/CGST Act 2017 for issuance of recovery orders u/s 73(9) - HELD THAT - Since a jurisdictional issue has been raised the writ petition shall be heard. Let affidavit-in-opposition to the present writ petition be filed within a period of four weeks from date. Reply thereto if any be filed within three weeks thereafter. Taking into consideration the fact that a prima facie case has been made out by the petitioner and the fact that a coordinate Bench of this Court in an identical matter in the case of OSL Exclusive (P.) Ltd. Union of India 2024 (3) TMI 1338 - CALCUTTA HIGH COURT had been pleased to pass a limited interim order it is proposed to stay the impugned demand made in the order dated 27th August 2024 as appearing at annexure P-6 to the writ petition till the end of December 2025 or until further order whichever is earlier. Liberty to mention after expiry of the period for exchange of affidavits.

Summary

The Calcutta High Court addressed a writ petition challenging the extension of the time limit under Section 73(10) of the WBGST/CGST Act, 2017 for issuance of recovery orders under Section 73(9). The petitioner relied on notifications dated 31 March 2023 and 28 December 2023 issued by the Central Board of Indirect Taxes and Customs, which extended the time limits. The petitioner contended that Section 168A, introduced effective 31 March 2020, permits extension only in "special circumstances" involving force majeure, which was absent during the relevant period (April 2019 to March 2020). The show cause notice dated 30 April 2024 and subsequent adjudication were thus argued to be a "colourable exercise of power," infringing on the petitioner's accrued rights. The State sought opportunity to file affidavits in opposition. Observing a "prima facie case," the Court granted a limited interim stay on the impugned demand order dated 27 August 2024 until December 2025 or further order, referencing a coordinate Bench's similar interim order in OSL Exclusive (P.) Ltd. v. Union of India (2024). The Court directed exchange of affidavits and allowed liberty to mention thereafter.