Bikash Goswami vs. Union Of INDIA And 4 Ors

Held

The Court held that for the Financial Year 2017-2018, the time limit for passing an Order under Section 73(9) of the CGST/AGST Act, 2017, was extended by Notification no. 09/2023-Central Tax dated 31.03.2023, which remained in effect. Consequently, the Order-in-Original dated 30.12.2023 was not subject to interference by the High Court in its writ jurisdiction, as the petitioner had an adequate and efficacious statutory remedy of appeal under Section 107 of the CGST/AGST Act, 2017. The Court cited established precedent that writ petitions are generally not entertained when such remedies exist, unless specific grounds like violation of fundamental rights, principles of natural justice, lack of jurisdiction, or challenge to vires are made out. Regarding the Order-in-Original dated 26.04.2024 for FY 2018-2019, the Court granted the petitioner liberty to file a separate writ petition if advised, without making any observations on merits. The Court clarified that it had not made any observations regarding the exceptional grounds for entertaining a writ petition. The writ petition was disposed of on these observations.

Facts

The petitioner, Bikash Goswami, a registered assessee under the CGST/AGST Act, 2017, received two Show Cause Notices (SCNs) dated 27.09.2023 and 13.12.2023. The first SCN, for FY 2017-2018, alleged net tax under-declared and excess claim of Input Tax Credit (ITC). The second SCN, for FY 2018-2019, alleged excess claim of ITC. These proceedings culminated in Orders-in-Original dated 30.12.2023 and 26.04.2024, respectively, imposing tax liabilities. The petitioner challenged the extension of time limits for issuing these orders, specifically referencing Notification no. 56/2023-Central Tax dated 28.12.2023, which extended the time for FY 2018-2019 up to 30.04.2024.

Key Issues

1. Whether the extension of time limit for issuing an order under Section 73(9) of the CGST/AGST Act, 2017, for the Financial Year 2017-2018, as provided by Notification no. 09/2023-Central Tax dated 31.03.2023, is valid and bars interference with the Order-in-Original dated 30.12.2023. 2. Whether the extension of time limit for issuing an order under Section 73(9) of the CGST/AGST Act, 2017, for the Financial Year 2018-2019, as provided by Notification no. 56/2023-Central Tax dated 28.12.2023, is valid, considering the alleged absence of a prior GST Council recommendation. Petitioner's Contention: The petitioner challenged the validity of Notification no. 56/2023-Central Tax, arguing it was issued without the requisite GST Council recommendation under Section 168A of the CGST Act, 2017. The petitioner also clubbed multiple causes of action in a single writ petition. Revenue's Contention: The judgment does not explicitly record arguments from the revenue or state regarding the validity of the notifications or the specific grounds for the SCNs. However, the revenue was represented and defended the proceedings.