Indirect Tax | July 2024

RECENT RULINGS BY COURTS AND AUTHORITIES

High Courts

No illegal exercise of power in issuance of notifications extending the timelines for passing of assessment orders for recovery of tax

In the case of Graziano Trasmissioni vs. Goods And Services Tax & 5 Ors¹, the Allahabad HC² dismissed a batch of petitions challenging the validity of the Notifications³ wherein the statutory timelines for issuance of assessment orders and issuance of show cause notices were extended. The petitioners contested the Notifications primarily on the grounds that the provisions of Section 168A of the CGST Act⁴ were wrongly invoked and there was no prevailing force majeure event occasioning the extension of time limit as stipulated by the Notifications. The Allahabad HC dismissed the petitions and made the following observations: the powers under Section 168A of the CGST Act (which enables the Central Government to extend statutory timelines due to force majeure) is a legislative