Assistant Commissioner Of Sales Tax Investigation 054 Mum Inv D 054 vs. Messurs Siddhi Real Estate Developers A Registered Partnership Firm

Facts

The petitioner, M/s. Siddhi Real Estate Developers, filed a Writ Petition (No. 12592 of 2024) against the Assistant Commissioner of Sales Tax, Investigation 054. The present Interim Application (IA No. 1354 of 2025) was filed by the Assistant Commissioner seeking a further extension of 12 weeks to adjudicate a show cause notice dated August 5, 2024. The Court had previously granted extensions for adjudication, the latest expiring on January 31, 2025. The applicant sought the extension because the Joint Commissioner of State Tax (HQ-1) had referred the case to the Fitment Committee, a GST Council sub-committee, for clarification via an email dated December 26, 2024, and a reminder was sent on January 10, 2025. The statutory time to adjudicate the show cause notice was set to expire on February 7, 2025.

Held

The Court acknowledged that the statutory period for adjudication was set to expire on February 7, 2025, and expressed prima facie doubt about its ability to extend time beyond this statutory limit. However, considering the peculiar facts of the case, where the issue in the show cause notice had been referred to the Fitment Committee for clarification by the Joint Commissioner of State Tax, the Court decided to stay the adjudication of the show cause notice. The stay was granted until the Joint Commissioner received clarity from the Fitment Committee and for a period of 15 days thereafter. The Applicant-Assistant Commissioner was granted liberty to move for vacating the stay once clarifications were received. This order was passed with the consent of the Assessee.

Key Issues

1. Whether the Court can grant an extension for adjudication beyond the statutory period prescribed under the MGST Act, 2017? The Petitioner (Assistant Commissioner) argued that an extension was necessary due to the ongoing clarification process with the Fitment Committee, a sub-committee of the GST Council, which was crucial for resolving the issues raised in the show cause notice. They relied on the fact that the Joint Commissioner had sought clarification and a reminder was issued, indicating the complexity and importance of the matter requiring guidance from a higher GST authority. The Respondent (M/s. Siddhi Real Estate Developers) did not appear to have made any specific arguments against the extension in the provided text, but the Court noted that the order was passed with the consent of the Assessee.