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TMI Blog2024 (10) TMI 1166X X X X Extracts X X X X X X X X Extracts X X X X ..... rari any other appropriate writ, order or direction, quashing and setting aside the show cause notice dated 29-09-2023 and summary show cause notice dated 30-09-2023 issued by the respondent authorities no. 5 vide Annexure B and B1 bearing no. DCCT/AUDIT/-2/KLB/DRC-01/2023-24/B and reference no. ZD290923055644Y respectively (c) To issue a writ of certiorari, mandamus or any other appropriate writ, order or direction, quashing and setting aside the order dated 21-12-2023 and summary of order dated 21-12-2023 issued by the respondent authorities no. 5 vide Annexure C and C1 bearing no. DCCT/AUDIT- 2/KLB/DRC-07/2023-24 and reference no. ZD2912230635881 respectively (d) To issue order(s), direction(s), writ(s), or any other relief(s) as this honourable court deems fit and proper in the facts and circumstances of the case and in the interest of justice. (e) To award costs of and incidental to this application be paid be the Respondents. 2. A show cause notice came to be issued to the petitioner under Subsection (10) of Section 73 of the GST Act on 29.09.2023 under Subsection (1) of Section 73 of the KGST and CGST Acts 2017. 3. The contention of the petitioner is that orders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6A does not envisage a repugnancy provision to resolve the inconsistencies between the Central and the State laws on GST. The 'recommendations' of the GST Council are the product of a collaborative dialogue involving the Union and States. They are recommendatory in nature. To regard them as binding edicts would disrupt fiscal federalism, where both the Union and the States are conferred equal power to legislate on GST. It is not imperative that one of the federal units must always possess a higher share in the power for the federal units to make decisions. Indian federalism is a dialogue between cooperative and uncooperative federalism where the federal units are at liberty to use different means of persuasion ranging from collaboration to contestation; and (c) The Government while exercising its rulemaking power under the provisions of the CGST Act and IGST Act is bound by the recommendations of the GST Council. However, that does not mean that all the recommendations of the GST Council made by virtue of the power Article 279A (4) are binding on the legislature's power to enact primary legislations; (ii) On a conjoint reading of Sections 2(11) and 13(9) of the IGST Act, read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act for issuance of Show Cause Notices (SCN) and orders for financial year 2017-18, 2018-19 and 2019-20, considering that the scrutiny and audit were delayed because of Covid-19 pandemic. He informed that the issue was discussed by the Law Committee and it was observed that earlier, such extension was given for the F.Y.2017-18. It was felt by the Law Committee that while there may be a need to provide additional time to the officers to issue notices and pass orders for FY 2017-18, 2018-19 and 2019-20 considering the delay in scrutiny, assessment and audit work due to COVID-19 restrictions, however, the same need to be made in a manner such that there is no bunching of last dates for these financial years as well as for the subsequent financial years. After detailed deliberations, Law Committee recommended that such time limits may be extended for another three months each for the FY 2017-18, 2018-19 and 2019-20. It was discussed in detail in officers meeting where one view was that extension for FY 2017-18 had already been given and further extension may create a perception that it is not a tax friendly measure and against the interest of taxpayers. 5.7.1 The Secretary stated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia, and no fault can be found therewith. 5.4. In that background, he submits that the above writ petition must be dismissed. 6. Heard Dr.Podar, learned counsel, Sri Raghavendra C.R., Sri. Bhanu Murthy D.S., and Sri. Veershetty B.K., Advocates for Petitioner and Sri. Sudhir Singh R. Vijapur. DSGI for R1, Sri. Girish S. Hulamani., Advocate for R2 and R3 and Sri. Malhar Rao, Addl. Advocate General and Smt. Maya T.R., HCGP for R4 and R5. Perused papers. 7. The short question that would arise for consideration is, whether the notification No.9/2023 issued by the Government of India on 31.03.2023 at Annexure-A can be said to be without any basis or without application of mind? 8. Section 168-A is CGST Act is reproduced hereunder for easy reference : 168A. Power of Government to extend time limit in special circumstances.--(1) Notwithstanding anything contained in this Act, the Government may, on the recommendations of the Council, by notification, extend the time limit specified in, or prescribed or notified under, this Act in respect of actions which cannot be completed of complied with due to force majeure. (2) The power to issue notification under sub-section (1) shall incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r matter, the Government of India having voluntarily accepted the recommendation, it would not be available for the assessee to now contend that the recommendation of the council is not binding on the Government of India. 15. Insofar as the decision of the Hon'ble Apex Court in Misc. Application No.21/2022 relied upon by the counsel for the petitioner at para No.2 of the said judgment reads as under : 2. On 23.03.2020, this Court directed extension of the period of limitation in all proceedings before Courts/Tribunals including this Court w.e.f. 15.03.2020 till further orders. On 08.03.2021, the order dated 23.03.2020 was brought to an end, permitting the relaxation of period of limitation between 15.03.2020 and 14.03.2021. While doing so, it was made clear that the period of limitation would start from 15.03.2021. 16. A perusal of the said above paragraph would indicate that the extension of the period of limitation in all proceedings before Courts and Tribunals is what was considered by the Hon'ble Apex Court in the said decision and not matters pertaining to assessment, reassessment, show cause notice or the like issued by tax Authorities. Thus, I am of the considered opini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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